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In: Statistics and Probability

You are given: (iv) The claim frequency for a single insured follows a Poisson distribution with...

You are given:
(iv) The claim frequency for a single insured follows a Poisson distribution with mean ?.
(v) The claim frequency rate, ?, has a gamma distribution with mean 1/10
and variance 4/10000
.
(vi) During the last 3 years, 150 claims have occurred.
(vii) In each of the three years, 200 policies were in force.
Determine the Bayesian estimate of the posterior claim frequency rate based upon the latest
observation.

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Expert Solution

orchestra answered 1 year ago
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