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2. (5 marks) Suppose that the distribution of claim frequency N and claim severity X are given as following. N012 X 1 2 3
2. (5 marks) Suppose that the distribution of claim frequency N and claim severity X are given as following. N012 X 1 2 3 Prob. 0.5 0.3 0.2 Prob. 0.4 0.4 0.2 (A) Calculate E[X + X] assuming that X, are i.i.d, with the same distribution of X k j=1 Compute P(S > 2). (B) Let S = X,, given that X, are i.i.d, with the same distribution of X and are independent of N. N the the ou
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A To calculate EX X we first need to find the joint probability mass function of X and X Since X and X are iid with the same distribution as X we can ...Get Instant Access to Expert-Tailored Solutions
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Understanding Basic Statistics
Authors: Charles Henry Brase, Corrinne Pellillo Brase
6th Edition
978-1133525097, 1133525091, 1111827028, 978-1133110316, 1133110312, 978-1111827021
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