Probability of ruin at first claim is calculated with an application of double integral. X follows Exponential distrib. N follows Poisson distrib. occurance of a claim is thus a discrete Poisson distribution....I am not sure why are we using a couble continous integral in this case...
Oh, its not. I think the Institute has removed the link to these exams. They used to have a different format, and it was called Statistics so even before the 100 series era. I will type in the content this evening, or copy paste as a picture.
Actually the solution is now clear to me after doing a few more problems since last time....I only have one question regarding the solution given by the double integral -> why is the upper limit of the second integral set at THETA?
