You are given: (i)Losses on an insurance coverage follow a lognormal distribution with parameters μ = θ and σ = 2. (ii) θ varies by policy holder in accordance with a normal distribution with mean 5 and variance 3. (iii) A policyholder submits 20 claims for losses. The average size of the claims is 10,000. Calculate the Buhlmann prediction of the size of the next loss for this policyholder.
You are given: (i)Losses on an insurance coverage follow a lognormal distribution with parameters μ = θ and σ = 2. (ii) θ varies by policy holder in accordance with a normal distribution with mean 5 and variance 3. (iii) A policyholder submits 20 claims for losses. The average size of the claims is 10,000. Calculate the Buhlmann prediction of the size of the next loss for this policyholder.
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.
Chapter2: Exponential, Logarithmic, And Trigonometric Functions
Section2.CR: Chapter 2 Review
Problem 111CR: Respiratory Rate Researchers have found that the 95 th percentile the value at which 95% of the data...
Related questions
Question
You are given:
(i)Losses on an insurance coverage follow a lognormal distribution with parameters μ = θ and σ = 2.
(ii) θ varies by policy holder in accordance with a
(iii) A policyholder submits 20 claims for losses. The average size of the claims is 10,000.
Calculate the Buhlmann prediction of the size of the next loss for this policyholder.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill