Consider an auto insurance portfolio where the number of accidents follows a Poisson distribution with parameter λ= 1000. Suppose the damage sizes for separate accidents are i.i.d. (independent identically distributed) r.v.'s having an exponential distribution with a mean of $2500. Each policy involves a deductible of $500. Let N₁ be the number of accidents that result in claims, and N₂ be the number of accidents that do not result in claims. Answer the following questions 1-5. Q1 Are N₁, №₂ dependent? O Depends on a situation, No O Yes Q2 What is the name of the distributions of N₁, №₂? Marked Poisson Gamma Exponential Compound Poisson
Consider an auto insurance portfolio where the number of accidents follows a Poisson distribution with parameter λ= 1000. Suppose the damage sizes for separate accidents are i.i.d. (independent identically distributed) r.v.'s having an exponential distribution with a mean of $2500. Each policy involves a deductible of $500. Let N₁ be the number of accidents that result in claims, and N₂ be the number of accidents that do not result in claims. Answer the following questions 1-5. Q1 Are N₁, №₂ dependent? O Depends on a situation, No O Yes Q2 What is the name of the distributions of N₁, №₂? Marked Poisson Gamma Exponential Compound Poisson
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.3: Special Probability Density Functions
Problem 54E
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