Revision as of 19:21, 5 August 2024 by Admin (Created page with "'''Key: D''' For the severity distribution, we have <math> \mu_X = 20 </math> and <math> \sigma_X^2 = 355 .</math> The standard for full credibility is <math display = "block"> \left( \frac{1.645}{0.05}\right)^2 (1 + CV_s^2) = \left( \frac{1.645}{0.05} \right)^2(1 + \frac{355}{20^2}) = 2043.05, </math> round up to 2044. {{soacopyright | 2023}}")
Exercise
ABy Admin
Aug 05'24
Answer
Key: D
For the severity distribution, we have [math] \mu_X = 20 [/math] and [math] \sigma_X^2 = 355 .[/math] The standard for full credibility is
[[math]]
\left( \frac{1.645}{0.05}\right)^2 (1 + CV_s^2) = \left( \frac{1.645}{0.05} \right)^2(1 + \frac{355}{20^2}) = 2043.05,
[[/math]]
round up to 2044.
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