Find the expected value for a policyholder

Assignment Help Applied Statistics

Reference no: EM131020778

An insurance company supposes that the number of accidents that each of its policyholders will have this year is Poisson distributed, with a mean depending on the policyholder: the Poisson mean Λ of a randomly chosen person has a Gamma distribution with the Γ(2, 1)-density function fΛ(λ) = λe^-λ (λ > 0). Find the expected value of Λ for a policyholder having x accidents this year (x = 0, 1, 2, . .).

Reference no: EM131020778

Questions Cloud

Calculate annual ordering costs with holding costs : Calculate annual ordering costs with holding costs (ignoring safety stock) for the EOQ. What do you notice about two? Suppose OfficeMax currently orders 120 printers at a time. How much more or less would OfficeMax pay in holding and ordering costs ..

Construct the joint ppf for josh and marion : If you construct the joint PPF for Josh and Marion, the coordinate (Bacon, Eggs) for the "kink" point of this joint PPF will be

Who would be affected if persons suggestion is followed : How would increasing the depreciation period affect American Movieplex's income?

What are the ethical issues in this situation : What are the ethical issues in this situation? Did the club have the right to pose questions that were unrelated to the issue at hand? What would you have done if you had been in this position? Why?

Find the expected value for a policyholder : the Poisson mean Λ of a randomly chosen person has a Gamma distribution with the Γ(2, 1)-density function fΛ(λ) = λe-λ (λ > 0). Find the expected value of Λ for a policyholder having x accidents this year (x = 0, 1, 2, . .).

How is audit risk affected by inherent risk : Be sure to substantiate your findings by reviewing Statements on Auditing Standards (SAS) on the American Institute of CPAs (AICPA) website.

Research issues in enterprise architecture : Analyze the types of organizational and computer architectures for integrating systems.

What did obama mean by phrase losing a job in the process : While running for president, Barack Obama made the following statement: "Well, look, people don't want a cheaper T-shirt if they're losing a job in the process." What did Obama mean by the phrase "losing a job in the process"?

Why is chinese company likely to end up manufacturing toy : In a newspaper column, Frank Wolak, a professor of economics at Stanford, referred to "the economic forces that lead to most children's toys being developed in the United States and mass-produced in China and other developing countries." What econ..

User Account

All Pages