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
Hi Prab, The course notes are very specific about the distribution of inter-claim times and so I'd expect the examiners to want to see the exponential distribution explicitly used. In the September paper students were provided with claim times to use. Hopefully now that you've seen the solution to the mock question you'd be comfortable sampling from the exponential distribution. Joe
