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The number of accident claims incurred per year for each insured is a Bernoulli random variable with probability 8, which takes value 0.1 with

The number of accident claims incurred per year for each insured is a Bernoulli random variable with probability 8, which takes value 0.1 with probability 0.8 and 0.2 with probability 0.2. Each claim may be of amount 20, 30, or 40, with equal probabilities. Claim frequency and claim severity are assumed to be independent for each insured. The data for the total claim amount is given in the table below. Year Number of insureds Total claim amount 100 240 200 380 250 592 280 1234 3 Calculate the Bhlmann-Straub credibility prediction of the pure premium and total loss in the fourth year.

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