1. 

   Edward Smith Active Member

   How is the equation for the variance of S derived in this question. I cant see where we are losing one of the terms in the compound variance equation?

    

   Edward Smith, Sep 3, 2021

   #1
2. 

   Dave Johnson ActEd Tutor Staff Member

   Hi
   
   Can you be more specific when you say we are losing a term in the variance equation? Could it be because you are using the formula on p16 for "Moments of a compound distribution" rather than "Compound Poisson distribution"?
   
   Dave

    

   Dave Johnson, Sep 6, 2021

   #2
3. 

   Edward Smith Active Member

   Got you - thanks for your help Dave

    

   Edward Smith, Sep 9, 2021

   #3

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