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.
- 3.41
- 38.95
- 40.97
- 42.15
- 69.94