Q8. Part I
I got confused on seeing the question based on buhlman straub credibility theory.
I am unable to link it with clarity, how this question refers to buhlman straub credibility model. Could some one help - why E(var(theta)) is taken as 0.2 whereas var(Xi) used to derive other value ? Apologies for inconvenience , here is original question and solution.
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Last edited by a moderator: Nov 8, 2019