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gcpgcp
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Q: In a group of policies, the monthly number of claims for a single policy has a Poisson distribution with parameter λ, where λ is a random variable with the following density: f(λ) = 2 exp { -2 λ } ; λ > 0
Find the moment generating function for the aggregate claims distribution if the claims have a gamma distribution with mean 2 and variance 2.
The solution uses a method for calculation which is greek to me (see attachment).
a) Can I use Ms(t) = Mn (log Mx(t)) ? Please explain steps to solve if YES.
b) If NO , Why ?
c) Where to find the method used for solving (as in attachment) in the core reading material ?
Find the moment generating function for the aggregate claims distribution if the claims have a gamma distribution with mean 2 and variance 2.
The solution uses a method for calculation which is greek to me (see attachment).
a) Can I use Ms(t) = Mn (log Mx(t)) ? Please explain steps to solve if YES.
b) If NO , Why ?
c) Where to find the method used for solving (as in attachment) in the core reading material ?