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The ground-up loss X for an insurance policy is modelled by a discrete mixture of Exp (1) and Exp (2) with survival function x>0, where

The ground-up loss X for an insurance policy is modelled by a discrete mixture of Exp (1) and Exp (2) with survival function image text in transcribed x>0,

where image text in transcribed [0,1] is the mixing weight. Policy limit of level 4 and ordinary deductible of level 0.5 are applied to each loss. Suppose that the samplesimage text in transcribed of the amount paid per payment image text in transcribed were recorded with sample mean 1. Calculate the estimator of image text in transcribed using the method of moments.

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