Question
For a member of the (a,b,0) class of distributions, you are given that 4 3 = 3/4 and 3 2 = 1 where pk is
For a member of the (a,b,0) class of distributions, you are given that 4 3 = 3/4 and 3 2 = 1 where pk is the probability that X=k. a. (3 points) Determine what distribution is being used and it's associated parameter(s). b. (3 points) Find p0 = P(X=0) c. (2 points) Let pk = P(X=k) be the unmodified distribution. Suppose that we are only interested the distribution of non-zero claims, find an expression in terms of pk for the Zero Truncated distribution of claims (i.e. find PZT(k)). d. (2 points) Suppose that the observed probability does not match the probability at X=0 and that a zero-modified distribution is appropriate. Suppose that PZM(0) = 0.75, find a recursive expression in terms of pk for the Zero Modified distribution of claims (i.e. find PZM(k)).
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