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Please help with the following questions with handwritten working out 2. A claim size random variable X has density function of the form, 400 fx
Please help with the following questions with handwritten working out
2. A claim size random variable X has density function of the form, 400 fx (D) = 400 + I 400 + 1 for some unknown 8. (a) Find the forms of the method of moments estimator o and the mothod of maximum likelihood estimator & based on a random sample of size n. (b) A sample of 50 claims from last year gave an average of 200. Use the method of moments to estimate 0. An arrangement with a reinsurance company has been made whereby the excess of any claim over 400 is handled by the reinsurer. i. What proportion of claims will be handled by the reinsurer? ii. What is the probability distribution and mean value for (pos- itive) claim amounts handled by the reinsurer? ifi. With this reinsurance arrangement, what is the average amount paid out by the baseline insurance company on claims made
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