Actuarial Notes

Exam MAS-I Practice Question 11

Study guide: Exam MAS-I

In a motor portfolio, 80% of drivers have a Poisson claim rate of 0.1 per year and 20% have a rate of 0.6 per year. Each driver's rate is fixed over time. A driver selected at random has had no claims in each of the past 2 years.

Calculate the driver's expected number of claims next year. Give your answer as a decimal to four decimal places.

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