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(c) Losses follows a compound distribution, with both frequency and severity having discrete distributions. The probability generating functions are: (i) For frequency PN(Z) = 1-2(2-1)
(c) Losses follows a compound distribution, with both frequency and severity having discrete distributions. The probability generating functions are: (i) For frequency PN(Z) = 1-2(2-1) (ii) For severity Px (z) =0.75+ (1-3(2-1))"-0.25 3 Calculate the probability the aggregate losses are exactly 1. (8 marks)
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