Answered step by step
Verified Expert Solution
Question
1 Approved Answer
with explanation Consider a collective risk model, where the claim count is distributed Poi(7) and the claim severity is distributed exponentially with mean equals to
with explanation Consider a collective risk model, where the claim count is distributed Poi(7) and the claim severity is distributed exponentially with mean equals to 1. Now, you are the junior analyst of the company and is assigned to provide a comparison between a proportional reinsurance of 50% and an excess of loss reinsurance with M =1/2. You should provide both the expectation and the variance of the pay-out
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started