Qn 20.1 ii

I see a note "Using a statistical package we get the following illustrative pure premiums by fitting distributions of the stated form with the same moments as the empirical distributions:"

I have the LR data points and I can use fitdistr from MASS package to obtain the parameters and can fit a lognormal distribution in R and can obtain the fitted values. However, I could not understand how to arrive at the burning cost pure premium similar to those presented in the book.

Also, guide me on how the average past recoveries is arrived at in this 20.1 ii part, please

Any direction/help is much appreciated

Thanks
KV

 

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I have the LR data points and I can use fitdistr from MASS package to obtain the parameters and can fit a lognormal distribution in R and can obtain the fitted values. However, I could not understand how to arrive at the burning cost pure premium similar to those presented in the book.

Can you explain this?