exercise:635bff2e72: Difference between revisions
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Latest revision as of 04:29, 15 March 2024
A portfolio of policies has the following properties:
- Claim frequency is Poisson distributed with unknown mean [math]\lambda [/math] varying from policy to policy.
- The mean [math]\lambda [/math] is distributed among the risks in the portfolio according to a gamma distribution.
- The expected claim frequency for a randomly selected policy is 2.
- The probability of a claim frequency observation equaling zero for a randomly selected risk is 27/125.
Determine the variance of [math]\lambda [/math].
- 1
- 4/3
- 2
- 3
- 27/4