S490C F08 Quiz 5 - Math 490C Fall 2008 Quiz 5 1. Claims...

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Math 490C Fall 2008 Quiz 5 1. Claims follow a Pareto distribution with θ = 3000 and α = 4. You decide to discretize the distribution using a span of 200. A is the probability assigned to f(1000) in the discrete distribution if the Method of Rounding is used. B is the probability assigned to f(1000) in the discrete distribution if the Method of Local Moment Matching is used with k = 1 (matching the total probability and the mean). Calculate 100,000(B – A).
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2. The number of medical insurance claims in a year is follows a Poisson
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This note was uploaded on 03/15/2012 for the course STAT 490 taught by Professor Na during the Fall '11 term at Purdue University-West Lafayette.

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S490C F08 Quiz 5 - Math 490C Fall 2008 Quiz 5 1. Claims...

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