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Maximising the Adjustment Coefficient Form

Maximising the Adjustment Coefficient Form

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Let's look at a numerical on the adjustment coefficient claims on a portfolio of insurance policies follow a compound Poisson process okay so if the claims are following a compound Poisson process we have where we know something about the adjustment coefficient right we know that lambda M × R should be equal to lambda plus SIA okay, so that is following an annual claim rate lambda individual claim amounts are independent XS are independent to follow an exponential distribution with mean mu so the mean of the exponential distribution the mean of the exponential distribution is mu which means I could very well of I could very well knock get my for the exponential distribution what is the value of my lambda of the mean of an exponential distribution is 1 by lambda right so 1 by lambda is coming out as mu which means lambda is 1 by mu and I know that the moment generating function for an exponential distribution is lambda by lambda minus T right the moment generating function for a typica

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Related searches to Maximising The Adjustment Coefficient Form

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