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Parameter Variability/Uncertainty

K

Kunjesh Parikh

Member
Why is it that the aggregate claim amount random variables S(i) under heterogeneous portfolio are independent, but under homogeneous portfolio not independent. In both the cases, its value depends on the value of the risk paramter. Then how?
 
The given that is simply because the parameter \(\lamda\) is varying so we need to know what it is before we can calculate anything to do with \(S_i\).
 
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