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act466-jan8-09
Course: ACT 466, Fall 2009School: Toledo
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order 29. In to simplify an actuarial analysis Actuary A uses an aggregate distribution S = X1 +...+ X N , where N has a Poisson distribution with mean 10 and X i = 15 for all i. . Actuary As work is criticized because the actual severity distribution is given by Pr Yi = 1 = Pr Yi = 2 = 05 , for all i, . where the Yi s are independent. Actuary A counters this criticism by claiming that the correlation coefficient...
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order 29.
In to simplify an actuarial analysis Actuary A uses an aggregate distribution S = X1 +...+ X N , where N has a Poisson distribution with mean 10 and X i = 15 for all i. . Actuary As work is criticized because the actual severity distribution is given by Pr Yi = 1 = Pr Yi = 2 = 05 , for all i, . where the Yi s are independent. Actuary A counters this criticism by claiming that the correlation coefficient between S and S * = Y1 +...+YN is high. Calculate the correlation coefficient between S and S .
b
g * b
g
(A) (B) (C) (D) (E)
0.75 0.80 0.85 0.90 0.95
Course 4: November 2001
-29-
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21.
You are given: (i) The number of claims has probability function: p x (ii) m x q 1 q x
m x
,
x = 0, 1, 2,, m
The actual number of claims must be within 1% of the expected number of cla...
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