Claim amounts from a portfolio have the distribution with PDF f(x) = 2cxex, x0. An individual excess of loss reinsurance arrangement with retention limit
Claim amounts from a portfolio have the distribution with PDF f(x) = 2cxex, x0. An individual excess of loss reinsurance arrangement with retention limit M = 3 is in force. A sample of the reinsurer's payment amounts gives the following values: n=10 = 87 = 923 where the units are millions of pounds. Find the maximum likelihood estimate of c.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Understanding the Problem and Data Problem We have a portfolio of claims with a given probability density function PDF An excess of loss reinsurance a...
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
