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CS1 chapter 7 question 12

A

Ayesha Khalil

Member
Hi,

I'm stuck on question 12, part i of the practise questions for ch7.

Where it says in the question "calculate the expected number of policies giving rise to the different number of claims assuming a poisson model" - I don't understand what formula they are using in the solutions.

Thanks for you help in advance :)

Ayesha
 
I think you mean Question 11
Instead of calculating each Poisson probability from scratch, they have used a recursion formula \(P(X=x) = \frac{\mu}{x} P(X=x-1)\) to save time.
You can use the usual formula from the Tables and still get the same answer.
 
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