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The number of accidents corresponding to a risk portfolio is a Poisson r.v. with parameter = 1000. The damage sizes for separate accidents are independent
The number of accidents corresponding to a risk portfolio is a Poisson r.v. with parameter = 1000. The damage sizes for separate accidents are independent r.v.s uniformly distributed on [0,10] (say, the unit of money is $1, 000). Each policy involves a deductible of 1. Let N 1 and N 2 be the number of accidents that do not result in claims, and the numbers of accidents that do result in claims, respectively.
Are N 1, N 2 independent?
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