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ABy Admin
Jun 01'22

Exercise

The following is known about the monthly claim frequency:

  • The monthly claim frequency has a geometric distribution
  • The probability that there are 4 claims in a month is half the probability that there are 2 claims in a month
  • Monthly claim frequencies are independent

Determine the variance of the annual claim frequency.

  1. 3.41
  2. 40.97
  3. 38.95
  4. 42.15
  5. 69.94
ABy Admin
Jun 01'22

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