Hi,
I have two questions on Q20.6:
For part Q20.6 (ii) why is the summation of probability, q, necessary for all i's (from 1 to 500)? If probabilities are constant for all risks, i, then should be able to simplify to 500 * q? (similar to pg 15 in the Acted course notes?)
For part Q20.6 (iv), could someone briefly explain where the formula for the MGF of compound Poisson distribution comes from? The solution shows: exp[q(Mx(t)-1)] but this is different to the formula in the Tables pg 16. Apologies if this topic was covered in CS1 and its just my memory!
Many thanks in advance for your help
I have two questions on Q20.6:
For part Q20.6 (ii) why is the summation of probability, q, necessary for all i's (from 1 to 500)? If probabilities are constant for all risks, i, then should be able to simplify to 500 * q? (similar to pg 15 in the Acted course notes?)
For part Q20.6 (iv), could someone briefly explain where the formula for the MGF of compound Poisson distribution comes from? The solution shows: exp[q(Mx(t)-1)] but this is different to the formula in the Tables pg 16. Apologies if this topic was covered in CS1 and its just my memory!
Many thanks in advance for your help