CAS Exam MAS-II Spring 2019, Question 19
Study guide: Exam MAS-II
You are modeling how many claims, Y_i, each individual policy i will have next year. You are using the following model:
\Pr(Y_i = y_i) = \binom{10}{y_i}p^{y_i}(1-p)^{10-y_i}f(p) = \frac{\Gamma(10)}{\Gamma(4)\Gamma(6)}p^{3}(1-p)^{5}Given the following five data points:
0,\, 0,\, 0,\, 1,\, 3Calculate the mean of the posterior distribution of p.
- A) Less than 0.05
- B) At least 0.05, but less than 0.10
- C) At least 0.10, but less than 0.15
- D) At least 0.15, but less than 0.20
- E) At least 0.20
Answer this question and see the worked solution