59. There are two types of claims that are made to an insurance company. Let Ni(t) denote...
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59. There are two types of claims that are made to an insurance company. Let Ni(t) denote the number of type i claims made by time t, and suppose that
{N1(t),t 0} and {N2(t),t 0} are independent Poisson processes with rates
λ1 = 10 and λ2 = 1. The amounts of successive type 1 claims are independent exponential random variables with mean $1000 whereas the amounts from type 2 claims are independent exponential random variables with mean $5000.
A claim for $4000 has just been received; what is the probability it is a type 1 claim?
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