When to use E(Z) and E(W)

[padasala]

Hi,

I understand the difference between E(Z) and E(W)... but I do not understand when to use it (in what context, etc)...

Would you be able to explain the scenarios involving reinsurance problems where I would have to use E(Z) and E(W)?

Note: In reference to chapter 4 where E(W) is the amount paid by the reinusrer on claims where it is involved...

 

[Hemant Rupani]

Hi,

I understand the difference between E(Z) and E(W)... but I do not understand when to use it (in what context, etc)...

Would you be able to explain the scenarios involving reinsurance problems where I would have to use E(Z) and E(W)?

Note: In reference to chapter 4 where E(W) is the amount paid by the reinusrer on claims where it is involved...

If you see, info. only about reinsurer or info. mainly about reinsurer concern, then solve E(W).
otherwise, E(Z).
if you get confused, solve both