Actuarial Outpost Bayesian Credibility Inverse Exponential/Gamma
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 Short-Term Actuarial Math Old Exam C Forum

#1
10-13-2010, 04:24 AM
 simon1012 Member Join Date: Oct 2007 Posts: 85
Bayesian Credibility Inverse Exponential/Gamma

Hi Professor Weishaus,

I am using ASM 9th edition, and solving practice exam #6 question #15.

In the question, there are 3 claims and $\alpha=5$.
If I am using formula 44.3, $\alpha* = \alpha + n$,
Then $\alpha*$ should equal 8.

However, according to the solution which calculate the posterior distribution, $\alpha*$ is equal to 6!

Did I misunderstand the formula 44.3, $\alpha* = \alpha + n$?
#2
10-13-2010, 08:36 AM
 yaukwankiu Wiki Contributor Join Date: Apr 2009 Studying for FAP, VEE Favorite beer: Guiness + Pilsner Urquell Posts: 94 Blog Entries: 2

i think you are right. in the new edition the answer is 2963 (E). did you check the errata?