Hi All,
In Q3.ii., we're asked calculate the time between claims and claim amounts for each simulation. In the solutions, an exponential distribution has been used to estimate these figures. However, I used a normal approximation of the exponential distribution which for Q3.iii. gave me an outcome similar to the one given in the solutions. In the exam, will a normal approximation still gain full credit?
Thanks,
Prab
In Q3.ii., we're asked calculate the time between claims and claim amounts for each simulation. In the solutions, an exponential distribution has been used to estimate these figures. However, I used a normal approximation of the exponential distribution which for Q3.iii. gave me an outcome similar to the one given in the solutions. In the exam, will a normal approximation still gain full credit?
Thanks,
Prab