Question
An insurer models aggregate claims for a policy as following a gamma distribution with = 6 and varying between individuals. It records the average claims
An insurer models aggregate claims for a policy as following a gamma distribution with = 6 and varying between individuals. It records the average claims from 1200 policyholders over a 5-year period. The average of these average annual claims is $794 and next year's credibility premium for an individual whose average claim was $644 is $702.
What is the variance of the average annual claims observed in the dataset?
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A Survey of Mathematics with Applications
Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde
10th edition
134112105, 134112342, 9780134112343, 9780134112268, 134112261, 978-0134112107
