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Let S be a mi. such that S = X1+. . . +XN, and corresponds to the known insurance model of the ow of claims.

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Let S be a mi. such that S = X1+. . . +XN, and corresponds to the known insurance model of the ow of claims. Suppose the m.g.f. of S is M (2) = exp{42(exp{1r(ez 1)} 1)}. Answer the following questions 6 8. (Remark: The fact that a parameter in the m.g.f. above equals 1r should not lead to a confusion. This parameter may be equal to any number. In this problem it is 7r. Why not?) Question 6 10 pts What is the distribution of each Xi? 0 Normal distribution with parameters (1.42} O Poisson distribution with parameter 42. O Poisson distribution with parameter 1r. 0 Uniform on [0,1]. 0 Gamma distribution with parameters [11342] Question 7 5 pts Name the distribution of S. 0 Compound Poisson O Gamma distribution 0 Poisson distriution 0 Uniform distribution 0 Exponential distribution Question 8 10 pts What is the expectation of S? 0 42w 0 1?41r O 1?64 042

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