Modeling Secon 16 Mo dels i, The Number of claims oad Ibe (a,b,0) class An iisuer ay have e por alr Becca ael viet shee of policies aid ale may elinlsested in Nhe nen ber of (0580S that occuria eile reel ced tobe the dist bobon of the ‘aumber of lesces ia a unit fine is rebeved to as the Frequency distribute, wscrele dis tibu tons ace osebel bor wobble, frequency. he Deel dpsfabelons ge cath foc ell fepeccya Yee ° Poissen (A) oF 1 ; oiegon mode | is N~ poisson (A) ahiéa wsed a5 3, ve sina 1€ §0,4%~§ (for he aumber of ea: Pn * Piven) = —ar- 6 Jeo events pec unit 4: wear ECW) 4 vanane Var(M)= 0 pg PLE): ECE) > MO? ¥ Properties, i) tw a ter Nm ae inky. poissen ts with pararelus din respectiely!, fen $2 BM ~ porsson (9-22:) war i) Soppese N ~ poisson (4) represtals the overall number of euenks fa a certeia urs perio csc alto Hab cach euert ton be clasyife d ya one Expr: SH and there ase Ko dishact types eb eve Sfyex Yat ghen ag cveat occers , the ohh, Lhy that if is Tyee PR Epes) hea, The nome, of cron of type L per peered is ™ poisson (Ap) 3 be fy K} oad MIN, 05t. as Now peissen (A) pepecen) the averbe _ Wi) Suppose M~ pet . a ae . To Ne. ie the he nits trae Sey Ns NN poisson (2) ° Binomral (om, p) N~ bial m,p) ag Pleads (it) pe leaf jn aos fo CON), ae Usrionte Voilu)=™ p (i-p) pf Pye): [la 9 e-n” * Geome tie (det p= cy repens the publ N~ geo (a) ~ negbia (1,8) | rig sepa, Hpbi] 1 llin)= (ap) ode) eb § N sepestals the numberof failiier [rere bash cues Atl: p lr-p\? | ~ oe ee avin — Vor tM)=B np) ee | oF Fults Li peed * Negative Braomral N~ Negbin Le, p) : aa) = =)) pL? h Pat Plura)= (nir-1) (a) (BY ntbers won E(W)* pg “CEE pri repase the pa. | Worl): ellis) — Netnen ie nenler Hers lobe the rth eucess le pr Pleads (Up) Eye o oe | 71) a Vavioace* Mean Veraace “elalroaship N~ poisson E(w) = Var tw) binoanal E(M) > Vor (w) Negative Bronul ECP) < Var(W) * The (a,b,0) class Lek 0 bs a, aoarnega tui ialgervalled raaloan varia ble with probobilily Feachen p= P(nea), IN is a member of — the Ca,b,0) class iF phere are toasdank & ond & seh tt the pf sahshres: seat sO pi fer all ine #2,3,.. | binomial (ap) U-p)" [gee (8) | aegbie P| Ga Note bad Wx porsson O70 620 bin aco $0 geo aro bee knny 830 60+The (a,b ,1) class Congider «No be a member of the (a,b,0) class, TE we modily ae for aay valve Preto), te resulting tordon ‘vaiable N*is said fy hace zevo-mod:fied drstulubon with Pld) = pt ten). 1-9 Pleten)s aa Pee eae ero tuncaded subcloss (Ny) é RY Plutso)= 0 we say oad it will be deroted by M the papabilihes ave cesoted — pl= Player) wilh — prso Pie a rhe NFA 2, that NP hus zeo-funcaled ols Nee fhap : mean E (Hy) = coon re PT) PO-p “2 “Tero modsbrea tren (M,) Po ph?0 we cay tho! WN? has a ceo-vedel disbibber id ull le deeckd by My the prbabilttes ow denoted by — pte Pli,2a) wth — ptrg Node tha) pez jot a7 } 4 won Ea)» (FB) Ela) vf Pues (ERE) (rs-p)