The number of claims each year from a portfolio of insurance policies over n years were...
The number of claims each year from a portfolio of insurance policies over n years were X1,X2,...,Xn. The insurer assumes that the annual number of claims have a Binomial distribution with index m and unknown parameter p. The prior information indicates p follows the Beta distribution ?(?) = Γ(? +?) / Γ(?)Γ(?) . ?^?−1 . (1−?)^?−1
(i) Write down the likelihood for p. [6 marks]
(ii) Find posterior distribution of the parameter p. [11 marks]
(iii) Find the Bayesian estimate of p under quadratic loss. [5 marks]
(iv)Show the Bayesian estimate can be written in the form of a credibility estimate. [8 marks]
Homework Answers
Add Answer to:
The number of claims each year from a portfolio of insurance
policies over n years were...
Problem 3.1 Suppose that XI, X2,... Xn is a random sample of size n is to...
Problem 3.1 Suppose that XI, X2,... Xn is a random sample of size n is to be taken from a Bermoulli distribution for which the value of the parameter θ is unknown, and the prior distribution of θ is a Beta(α,β) distribution. Represent the mean of this prior distribution as μο=α/(α+p). The posterior distribution of θ is Beta =e+ ΣΧ, β.-β+n-ΣΧ.) a) Show that the mean of the posterior distribution is a weighted average of the form where yn and...
The geometric distribution is a probability distribution of the number X of Bernoulli trials needed to...
The geometric distribution is a probability distribution of the number X of Bernoulli trials needed to get one success. For example, how many attempts does a basketball player need to get a goal. Given the probability of success in a single trial is p, the probability that the xth trial is the first success is: Pr(x = x|p) = (1 - p*-'p for x=1,2,3,.... Suppose, you observe n basketball players trying to score and record the number of attempts required...
Number 4 turns out to be an inverse gamma function with parameters alpha= n and beta=...
Number 4 turns out to be an inverse gamma function with
parameters alpha= n and beta= the sum of x sub i
PLEASE ANSWER #5 NOT #4
4. Suppose that X1,X2, 10 pts. the p.d.f. is given by form a random sample from a distribution for which where the unknown parameter θ > 0. Suppose also that the improper prior of θ is m(0) Find the posterior distribution π(θ x). Hint: The inverse gamina distribution from question 6 in Homework...
Within a certain period of time, let n be the number of health claims (the amount...
Within a certain period of time, let n be the number of health claims (the amount the insurance company pays the insured) of an insurance company, and suppose that the sizes of the claims areXi,... , Xn i.i.d Negative Expo nential with parameter ?. Let P be the premium charged or each policy (the amount the insured pays up front and let Sn-Xi+...+Xn. Assume the total amount of the claims should not exceed the total premium for the rn policies...
Number 2 only PLEASE 1. [40] 6.4-5. Let Xi, X2..,Xn be a random sample from dis-...
Number 2 only PLEASE
1. [40] 6.4-5. Let Xi, X2..,Xn be a random sample from dis- tributions with the given probability density functions. In each case, find the maximum likelihood estimator . 6.4-10. Let X1, X2,... ,Xn be a random sample of size n from a geometric distribution for which p is the probabil- ity of success. (a) Use the method of moments to find a point estimate 2. [20] for p. 100] 6.5-3. The midterm and final exam scores...
3. Assume that X is the number of large earthquakes (with magnitude 2 7.5) occurring in...
3. Assume that X is the number of large earthquakes (with magnitude 2 7.5) occurring in each year. A statistician suggested that X follows a Poisson distribution with parameter ?. A Poisson distribution with parameter ? has expectation ? and variance ?. Suppose a data set 1,22,.,^n is the realization of a random sample Xi,..., Xn from this distribution. One can use either ? 1-X, or ?2-1 ?21 (Xi-%)2 to estimate the parameter ?. (a) Find Eli21 (b) Are both...
Can you solve Question 4.1.3 with details? This is from Advanced Statistics. 236 Some Statistical Inferences...
Can you solve Question 4.1.3 with details? This is from Advanced
Statistics.
236 Some Statistical Inferences the histogram. Use the R function dganna(X, 8hape. 1,scale-のto evaluate the plf. (c) Obtain the sample median of the data, which is an estimate of the median lifetime of a motor. What parameter is it estimating Le., determine the nedian of x)? (d) Based oa the mle, what is another estimate of the median of X? .1.2. Here are the weights of 26 professional...
Problem 3.1 Suppose that XI, X2,... Xn is a random sample of size n is to be taken from a Bermoulli distribution for which the value of the parameter θ is unknown, and the prior distribution of θ is a Beta(α,β) distribution. Represent the mean of this prior distribution as μο=α/(α+p). The posterior distribution of θ is Beta =e+ ΣΧ, β.-β+n-ΣΧ.) a) Show that the mean of the posterior distribution is a weighted average of the form where yn and...
The geometric distribution is a probability distribution of the number X of Bernoulli trials needed to get one success. For example, how many attempts does a basketball player need to get a goal. Given the probability of success in a single trial is p, the probability that the xth trial is the first success is: Pr(x = x|p) = (1 - p*-'p for x=1,2,3,.... Suppose, you observe n basketball players trying to score and record the number of attempts required...
Number 4 turns out to be an inverse gamma function with
parameters alpha= n and beta= the sum of x sub i
PLEASE ANSWER #5 NOT #4
4. Suppose that X1,X2, 10 pts. the p.d.f. is given by form a random sample from a distribution for which where the unknown parameter θ > 0. Suppose also that the improper prior of θ is m(0) Find the posterior distribution π(θ x). Hint: The inverse gamina distribution from question 6 in Homework...
Within a certain period of time, let n be the number of health claims (the amount the insurance company pays the insured) of an insurance company, and suppose that the sizes of the claims areXi,... , Xn i.i.d Negative Expo nential with parameter ?. Let P be the premium charged or each policy (the amount the insured pays up front and let Sn-Xi+...+Xn. Assume the total amount of the claims should not exceed the total premium for the rn policies...
Number 2 only PLEASE
1. [40] 6.4-5. Let Xi, X2..,Xn be a random sample from dis- tributions with the given probability density functions. In each case, find the maximum likelihood estimator . 6.4-10. Let X1, X2,... ,Xn be a random sample of size n from a geometric distribution for which p is the probabil- ity of success. (a) Use the method of moments to find a point estimate 2. [20] for p. 100] 6.5-3. The midterm and final exam scores...
3. Assume that X is the number of large earthquakes (with magnitude 2 7.5) occurring in each year. A statistician suggested that X follows a Poisson distribution with parameter ?. A Poisson distribution with parameter ? has expectation ? and variance ?. Suppose a data set 1,22,.,^n is the realization of a random sample Xi,..., Xn from this distribution. One can use either ? 1-X, or ?2-1 ?21 (Xi-%)2 to estimate the parameter ?. (a) Find Eli21 (b) Are both...
Can you solve Question 4.1.3 with details? This is from Advanced
Statistics.
236 Some Statistical Inferences the histogram. Use the R function dganna(X, 8hape. 1,scale-のto evaluate the plf. (c) Obtain the sample median of the data, which is an estimate of the median lifetime of a motor. What parameter is it estimating Le., determine the nedian of x)? (d) Based oa the mle, what is another estimate of the median of X? .1.2. Here are the weights of 26 professional...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago