A
Anjum
Member
Consider two portfolios, A and B, of insurance policies and denote by XA the number of claims received in portfolio A and by XB the number of claims received in portfolio B during a calendar year. The observed numbers of claims received during the last calendar year are 134 for portfolio A and 91 for portfolio B. XA and XB are assumed to be independent and to have Poisson distributions with unknown parameters A and B. Determine an approximate 99% confidence interval for the difference A B. You may use an appropriate normal distribution.
Kindly explain the below points-
1.why is sample size=1
2.why have we taken Beta(a)=134
Kindly explain the below points-
1.why is sample size=1
2.why have we taken Beta(a)=134