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AAdmin
Jun 01'22

Exercise

Losses are assumed to have an exponential distribution with unknown mean [math]\theta[/math]. Ten policies have a deductible of $500 and the total number of payments for the ten policies has the moment generating function

[[math]] (0.2 + 0.8e^t)^{10} [[/math]]

Determine the mean [math]\theta[/math].

  1. [100, 150]
  2. [300, 320]
  3. [475, 525]
  4. [1750, 2000]
  5. [2200, 2400]
AAdmin
Jun 01'22

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