Claim sizes are normally distributed with mean 0 and variance 1,000,000. The parameter 0 varies by risk class, and is normally distributed with mean 2,500 and variance 4,000,000. In a given risk class, the following claims are observed: 3,000 5,000 2,000 2,200 3,300 Determine the posterior expected claim size for this risk class.
Claim sizes are normally distributed with mean 0 and variance 1,000,000. The parameter 0 varies by risk class, and is normally distributed with mean 2,500 and variance 4,000,000. In a given risk class, the following claims are observed: 3,000 5,000 2,000 2,200 3,300 Determine the posterior expected claim size for this risk class.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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48.2, Claim sizes are normally distributed with mean 0 and variance 1,000,000. The parameter 0 varies by risk class, and is normally distributed with mean 2,500 and variance 4,000,000. In a given risk class, the following claims are observed: 3,000 5,000 2,000 2,200 3,300
Determine the posterior expected claim size for this risk class.
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