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AAdmin
Jun 02'22

Exercise

You are given the following about a risk:

  • Claim frequency and claim severity are independent
  • Monthly claim frequency is Poisson distributed
  • Claim severity is uniformly distributed.

If [math]S[/math] is an annual loss for the risk, determine the maximum of [math]\operatorname{E}[S^2]/\operatorname{E}[S]^2[/math].

  1. 1/2
  2. 3/4
  3. 1
  4. 4/3
  5. 5/3
AAdmin
Jun 02'22

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