3 An insurance company produces the following summary of claim amounts and number of car insurance policies sold in four cities of the UK. Claims (1000s) Edinburgh Dundee Manchester London Policies Edinburgh Dundee Manchester London i) ii) iii) 2016 745.28 164.94 1,204.09 615.06 2016 1726 556 2743 790 2017 629.78 213.26 1,244.51 607.62 2017 1569 665 2817 719 2018 643.87 188.24 1,250.56 476.44 2018 1431 593 2842 1029 2019 2020 912.72 430.22 189.41 186.13 1,085.24 1,304.99 465.34 587.54 2019 1903 681 2859 1053 2020 1164 583 2907 954 Calculate the parameters under assumptions of EBCT model 2. Calculate the credibility factors for claim amounts in each city. Calculate the expected claim amounts for each city in 2023. 2021 1507 592 2761 738 2021 644.29 160.16 1,220.83 483.36 2022 1819 607 2730 508 TOTAL MARKS 2022 968.06 196.16 1,315.42 165.73 14 7 12 33 2023 1931 581 2853 801