• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Ruin Theory - Adjustment Coefficient Calculations

A

ActStudent2711

Member
Hi,

When answering a question on determining the adjustment coefficient where the claim distribution is Exponential and the aggregate claims process is Poisson, would full marks be awarded if using the following functions from the notes: (alpha is the parameter for exponential)

R = alpha*theta/(1+theta) or alpha - (lambda/c)

Or would we have to show all steps ie. from: Mx(R) = 1 + (1+theta)m_1 R ?

Thanks in advance!
 
Hi,
Good question!
I appreciate that this example is given in the notes, but would recommend that you show all steps. This will show the examiner that you understand the steps, and if you do make a mistake then you will gain interim working marks.
Alvin.
 
You must log in or register to reply here.
Back
Top