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Compound Probability with Dependent Events - Mr. Ace Math
For more great math content, visit mracemath.com. In this video, you will learn about compound probability, specifically with independent events. Remember, each video has a full lesson, practice problems, and solutions. So you'll get to see if you've really learned it! Already know it? Scroll down to the “Video Breakdown”, and click on the ...
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Assume the aggregate-loss distribution follows a compound distribution with the claim frequency distributed as a Poisson with mean 569 , and the claim severity distributed with mean 120 and standard deviation 78 . (a) Calculate the mean and the variance of the aggregate loss. (b) Calculate the probability that the observed aggregate loss is within 6 % of the mean aggregate loss. (c) If the mean of the claim frequency increases to 620, how might the claim-severity distribution be changed so that
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