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| rev | Admin | (Created page with "An insurer uses classification ratemaking to set rates and uses a single rating variable to classify policies with three different levels: level I, level II and level III. The pure premium for each level is assumed to be gamma distributed with unknown parameters <math>\theta </math> and <math>\alpha </math> that change across levels. More precisely, we have the following: {| class="table table-bordered" |- ! Level !! <math>\alpha </math> !! <math>\theta </math> !! Expos...") | Jul 25'24 at 19:51 | +1,006 |