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You are given: (i) An individual insured has annual claim frequencies that follow a Poisson distribution with mean . (ii) An actuary's prior distribution for
You are given: (i) An individual insured has annual claim frequencies that follow a Poisson distribution with mean . (ii) An actuary's prior distribution for the parameter has probability density function: () = 0.5 [5e^5 + 0.2e^0.2] (iii) In the first policy year, no claims were observed for the insured. Determine the expected number of claims in the second policy year.
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