• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

General full credibility formula for frequency

J

jack123

Active Member
Could you explain how we derive equation 18.6 on Chapter 18 page 17? I have tried deriving this myself and can only get this answer if n = mu.

I am also confused on the distinction between n and mu. Unless I've misunderstood this, mu is the expected number of claims and n is also the expected number of claims. So why have two different variables?
 
See my derivation attached. We explain n and mu on page 10 of Chapter 18.
 

Attachments

  • SP8 Chapter 18 - Derivation of standard for full credility - non-Poisson case.pdf
    194.6 KB · Views: 9
You must log in or register to reply here.
Back
Top