S479 F09 Quiz 3 - The first Gamma distribution with...

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Stat 479 Fall 2009 Quiz 3 September 17, 2009 1. The random variable X is is distributed as a Pareto distribution given a parameter θ and a parameter α = 3. θ follows a gamma distribution with parameters α = 2 and θ = 3. Calculate Var(X).
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2. Losses are distributed as a two point mixture distribution of Gamma distributions.
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Unformatted text preview: The first Gamma distribution with parameters of α = 4 and θ = 2 has a weight of 0.75. The second Gamma distribution with parameters of α = 4 and θ = 10 has a weight of 0.25. Use the normal approximation to determine the probability that the sum of 100 independent claims will exceed 1750....
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