Actuarial Outpost Conditional Distribution Problem
 Register Blogs Wiki FAQ Calendar Search Today's Posts Mark Forums Read
 FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

 Probability Old Exam P Forum

#1
02-10-2018, 10:40 PM
 JohnTravolski Member Non-Actuary Join Date: Aug 2016 Posts: 48
Conditional Distribution Problem

The frequency distribution for the number of losses for a policy with no deductible is negative binomial with r = 3 and β = 5. Loss amounts for this policy follow the Weibull distribution with θ = 1000 and τ = 0.3. Determine the expected number of payments when a deductible of 200 is applied.

I'm not entirely sure how to go about this one... am I supposed to find the expected number of claims with loss amounts that are greater than 200? If so, I think that would give me the expected number of payments the question asks for. But if that's what I'm after, how do I calculate that? I can get the probability that an individual loss amount is greater than 200 from the provided Weibull distribution, but then how do I tie that back to the negative binomial distribution?

 Posting Rules You may not post new threads You may not post replies You may not post attachments You may not edit your posts BB code is On Smilies are On [IMG] code is On HTML code is Off

All times are GMT -4. The time now is 07:37 PM.

 -- Default Style - Fluid Width ---- Default Style - Fixed Width ---- Old Default Style ---- Easy on the eyes ---- Smooth Darkness ---- Chestnut ---- Apple-ish Style ---- If Apples were blue ---- If Apples were green ---- If Apples were purple ---- Halloween 2007 ---- B&W ---- Halloween ---- AO Christmas Theme ---- Turkey Day Theme ---- AO 2007 beta ---- 4th Of July Contact Us - Actuarial Outpost - Archive - Privacy Statement - Top