In Q&A bank part 2. Question 2.2(i), I have the following doubts: 1.Why has there been no use of summation ( or product) for calculating the likelihood.? 2. Let X be the number of claims per policy per year. So summation of X in the past year will give n. Using this approach how can we possibly solve the question?
1. Because a single binomial(100,p) gives the probability/likelihood of the number of claims in 100 policies. 2. Yes, you can do this way - in which case you are using 100 Bernoulli(p)'s which are equivalent to a Bin(100,p).
