1. 

   sma09gc Member

   hi,
   
   I'm confused as to why the p(x>1000) is included in the likelihood function when we're looking at the direct insurer. Can you explain the solution to this q to me please?
   
   Thanks!

    

   sma09gc, Apr 5, 2017

   #1
2. 

   John Lee ActEd Tutor Staff Member

   The retention limit is 1000 - so when the insurer paid the 1000 this means that the claim was >1000.

    

   John Lee, Apr 7, 2017

   #2

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