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Determine the posterior distribution and the bayesian premium for the 11th payment. 3. For a policyholder, the amount of a single payment is normally distributed
Determine the posterior distribution and the bayesian premium for the 11th payment.
3. For a policyholder, the amount of a single payment is normally distributed with mean O and variance v2 1000. The parameter 0 varies according to the normal distribution with mean u = 100 and variance o2 = 200. Ten payments were made for the policyholder and the sum of those ten payments was 1000. 3. For a policyholder, the amount of a single payment is normally distributed with mean O and variance v2 1000. The parameter 0 varies according to the normal distribution with mean u = 100 and variance o2 = 200. Ten payments were made for the policyholder and the sum of those ten payments was 1000Step by Step Solution
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