CAS Exam MAS-II Fall 2018, Question 5
Study guide: Exam MAS-II
You are given:
- The number of claims incurred per year for each insured has mean
\thetaand variance2\theta. \thetais uniformly distributed from 0.05 to 0.25.- The following table of claim experience for a company:
| Year | Number of Insureds | Number of Claims |
|---|---|---|
| 1 | 200 | 15 |
| 2 | 250 | 20 |
| 3 | 225 | 25 |
| 4 | 250 | --- |
Calculate the estimated claim count for this company in Year 4 using the Bühlmann-Straub credibility approach.
- A) Less than 21
- B) At least 21, but less than 23
- C) At least 23, but less than 25
- D) At least 25, but less than 27
- E) At least 27
Answer this question and see the worked solution
Concepts tested
- Bühlmann-Straub Credibility
- Expected Value of Process Variance
- Variance of Hypothetical Means
- Uniform Continuous Distribution