Consider a collective risk model, where the claim count is distributed Poi(a) and the claim severity is distributed expo
Posted: Sun Oct 03, 2021 11:12 am
Consider a collective risk model, where the claim count is
distributed Poi(a) and the claim severity is distributed
exponentially with mean equals to b, where a=9 and b=4. Provide a
comparison between a proportional reinsurance of 50% and an excess
of loss reinsurance with M = b/2 . Provide both the expectation and
the variance of the pay-out.
Please include an explanation. I really want to learn this
topic.
distributed Poi(a) and the claim severity is distributed
exponentially with mean equals to b, where a=9 and b=4. Provide a
comparison between a proportional reinsurance of 50% and an excess
of loss reinsurance with M = b/2 . Provide both the expectation and
the variance of the pay-out.
Please include an explanation. I really want to learn this
topic.