Question: We consider a compound Poisson model with E ( N ) = 280 and S i ~Gamma(192,30). The pure premium for the total population is
We consider a compound Poisson model with E(N) = 280 and Si~Gamma(192,30). The pure premium for the total population is $60 per unit of exposure. If the average pure premium for the last year was $105, calculate the credibility premium of order (0.1,0.99) for the following year.
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