An insurer has data on losses for four policyholders for 7 years. The loss from the h policyholder for year j is X. You are given: 4 ΣΣ(Χ,- Χ)-33.60 =1 j=1 Σ(Χ- -3.30 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor for an individual policyholder.

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100%
(A)
Less than 0.6
(B)
At least 0.6, but less than 0.7
(C)
At least 0.7, but less than 0.8
(D)
At least 0.8, but less than 0.9
(E)
At least 0.9
An insurer has data on losses for four policyholders for 7 years. The loss from the 1h
policyholder for year j is X.
You are given:
4 7
É({xy – X,) = 33.60
Σ(Χ- x- 3.30
Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor
for an individual policyholder.
Transcribed Image Text:(A) Less than 0.6 (B) At least 0.6, but less than 0.7 (C) At least 0.7, but less than 0.8 (D) At least 0.8, but less than 0.9 (E) At least 0.9 An insurer has data on losses for four policyholders for 7 years. The loss from the 1h policyholder for year j is X. You are given: 4 7 É({xy – X,) = 33.60 Σ(Χ- x- 3.30 Using nonparametric empirical Bayes estimation, calculate the Bühlmann credibility factor for an individual policyholder.
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