50. (2001 Nov \#15) You are given the following information about a general liability book of business comprised of 2500 insureds: (i) Xi=j=1NiYij is a random variable representing the annual loss of the ith insured. (ii) N1,N2,,N2500 are independent and identically distributed random variables following a negative binomial distribution with parameters r=2 and =0.2. (iii) Yi1,Yi2,,YiNi are independent and identically distributed random variables following a Pareto distribution with =3.0 and =1000. (iv) The full credibility standard is to be within 5% of the expected aggregate losses 90% of the time. Using classical credibility theory, determine the partial credibility of the annual loss experience for this book of business. (A) 0.34 (B) 0.42 (C) 0.47 (D) 0.50 (E) 0.53 (Ans: C)