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Unformatted text preview: than 2100 claims. 3. The random variable X is distributed as a Pareto distribution with parameters α and θ. E(X) = 1 and Var(X) = 3. The random variable Y is equal to 2X. Calculate the Var(Y). 4. The number of hospitalization claims in a year follows a Poisson distribution with a mean of λ. The probability of exactly three claims during a year is 60% of the probability that there will be 2 claims. Determine the probability that there will be 5 claims....
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- Fall '11
- Probability theory, insurance company, 60%