ABy Admin
Jun 01'22
Exercise
An insurer sells an annual policy with a claim frequency with the following distribution:
[[math]]
p_k = \binom{4}{k}q^k(1-q)^{4-k}.
[[/math]]
The parameter [math]q[/math] is unknown but your prior beliefs indicate that it has the following density function on [0,1]:
[[math]]
12 \, q^2(1-q).
[[/math]]
Determine the expected annual claim frequency.
- 0.6
- 2.3
- 2.4
- 3.25
- 4