Calculate the average number of claims on any given day, week and month. Let t’ > 0 be an instance of time.
STATISTICS An insurance company has an initial surplus of 100 and premium loading factor of 20%. Assume that claims arrive according to a Poisson process with parameter A = 5 and the size of claims Xi are iid random variables with Xi ,-,, exp( 1-0). The time unit is 1 week. Assume that 1 month […]