Question
Suppose there is a risk with the following form: N S= 2 Y (colective model) j=1 where each claim is modeled using a Pareto
Suppose there is a risk with the following form: N S= 2 Y (colective model) j=1 where each claim is modeled using a Pareto variable (a, b). "excess of loss " Under reinsurance with retention level M, the amount to be paid by the insurer for each claim is : Y^= min { Yj, MS Get the following: a) E[YA] b) E[YR] C) E (SA)
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
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