Hi all,
I keep seeing it popping up for the pareto distribution that a claim amount increase of 5% for example would have impact only on lambda. I cant find any justification on this in the course notes, does anyone know of a rule for this?
also, im a bit worried now that there might be rules for the other distributions that im not aware of, regarding claim amount increases - is there some sort of general rule?
Could someone please help on this? (I understand its easter, so its a bit of a long-shot but any help would be really appreciated!)
I keep seeing it popping up for the pareto distribution that a claim amount increase of 5% for example would have impact only on lambda. I cant find any justification on this in the course notes, does anyone know of a rule for this?
also, im a bit worried now that there might be rules for the other distributions that im not aware of, regarding claim amount increases - is there some sort of general rule?
Could someone please help on this? (I understand its easter, so its a bit of a long-shot but any help would be really appreciated!)