flyless

July 29th 2008, 09:39 PM

I have one question about aggregate loss. It is in ASM manual:

14.6 You are given:

*An aggregate loss distribution has a compound Poisson distribution with expected number of claims equal to 1.25;

*Individual claim amounts can take only the value 1,2 or 3, with equal probability.

Determine the probability that aggregate losses exceed 3.

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The first step is to factor out the the probability of 0, which is e^(-1.25)=0.2865048, however, the answer in the manual just simply multiples that number. Did i miss sth here?

Any thoughts?:wacko:

14.6 You are given:

*An aggregate loss distribution has a compound Poisson distribution with expected number of claims equal to 1.25;

*Individual claim amounts can take only the value 1,2 or 3, with equal probability.

Determine the probability that aggregate losses exceed 3.

-----------------------------------------------------------

The first step is to factor out the the probability of 0, which is e^(-1.25)=0.2865048, however, the answer in the manual just simply multiples that number. Did i miss sth here?

Any thoughts?:wacko: