Ruin Theory, Exam style q2

Discussion in 'CT6' started by Patrova01, Mar 9, 2015.

  1. Patrova01

    Patrova01 Active Member

    Hi

    Can someone help me understand the table in the solution. I follow through with 0, or 1 claims, how the probabilities are obtained. But then i'm confused with the last line, the 2 claims. The solution says 50, 50. Why are we disregarding 50,100 or 100,100? Maybe there's something i;m missing. Help me get clarity please.
     
    Patrova01, Mar 9, 2015
    #1
  2. Hemant Rupani

    Hemant Rupani Senior Member

    Because if total clams were 150 or 200 , there were be ruin.........
     
    Hemant Rupani, Mar 9, 2015
    #2
  3. Patrova01

    Patrova01 Active Member

    Oh ja, cause we want total aggregate claims to be below 106.2. :eek: Thank you..was missing that
     
    Patrova01, Mar 10, 2015
    #3
  4. Hemant Rupani

    Hemant Rupani Senior Member

    Exactly!
     
    Hemant Rupani, Mar 10, 2015
    #4

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