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  #1  
Old 06-19-2018, 11:58 PM
cashcrazy cashcrazy is offline
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Post SOA #53

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Hi, I approached this question using the following formula:
Var[S] = E[X]^2*Var[N] + E[N]*Var[X]
where S = aggregate losses
X = claim amount
N = # of claims.

Is it possible to do this question using the above formula? If so, I'd appreciate any help. Thank you.
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Old 06-20-2018, 12:01 AM
OliverQueen OliverQueen is online now
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That formula doesn't work because # of claims and severity are not indepedent
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