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QvEM can be Cl@tnfied mo one oF om AYRE [th “THe provaidity Function (ef) re denotes the probally WelaAKEE fi, stn “edgendent OF All ower events thar exactly Ke eveNrs (rich as claims or (osser) OCeUr Tren Ye AUNIET OF EVENT Oy peny enim camespenting, ie 5 fo event tyre 1, 1 mm, rempectively , are muiahy PO) = Poly = €(2) z, ree" independent FOSFON Fandom vanables wile meanr AtescoApa, wepenvely PO Cay (Ss 2) = L8H). (Woman) eR] av” fe 2 My eos Hin On) 22 cueny—. Ceemay Pre OMEN ya Ke Am I NEN) x Pr (NEN) * a: 2 fa gem * Pe (oy LP ee eR 709 (oe mt tm oF fn = tr Mabon = fy yr. : i ete Cars) . ° og Gales ingfnforndsceeke NONAPLES, dd wy 8 ee Whee 1 =A Ma tea tie - Smvarty, Ahemargnal AE Myr = Cet) =z fee oes Demoneiate . te Wye 97) 2 Z Celyeng [Wen) Pe (won) ree «Eres oe oh 3 jie oe de (eo oz (jr (Ps) era = Mp Une) fen, SY, oT i em (Ms FZ Catisepa pio (2 227 ly Uhed ag Gp 5 j ; ns) (n-ne! pe We My (ys EON) a? Gaye ce) & sg e Pin (2) = 27 bly Cindy + 27> Ma Int2) a bie co = EW + EIN) = eM (ors) % ' PCarB> = PCANG = &(N(w-t)) asl ‘ Game betepemtor=parston= dite (GSoC MepOve-bamrIa PERTAIN tes SAE, enon ays PeCNew = eee (HR pe : eh Cty ee)", ba) 2 eA OM, Ne Ke Ot, 2, 290, P>0 =r = Ew = PC P ae (2) = BCD. Gree E[Mor} = rly >* fe. eanet Tease = ECN(N-1D) + EN?- CeCny)* My =e tA- At (1) = reer TGep Taetert) “theorem 6.1 i ‘ PCD = Che F Cayyt to > = TT Poy (2) = IT Oe [az (2-49) Lb rmeauty za * E (NIE FY rN) = o [$eern] (ME FP and var (sy =r BCE) a L mean © variance. ete) (CXETResBrontal = bisb Us t.n + LENG py be mderendent poston taranes Pays C4) ate aol hn Povamee? AL, oe yb) = Teen NLT MEE on ENN de: : i har a rowan ait, wt farametes A + --tAn edie herren 6.2, | Mes [ace octet ‘Suypore that the number of event Nix a POGION random | be = = rook anade ute mean A Tuther supose thakeath PET PCM TRD © (B) 4h Cigy™*, Scanned with CamScanner ESN LOEOIHCO Be ark, bel 28h Pet te (Ojl0) choy oF At. provided that sere ex's Gonnants A and b. Member oF the (a/eyd) ast vintaron » Poisson ° A pinta) Cm. ap" re a : -r ee g to Urey 146 fe ep) amuse fp oD 6 PE earth, entiae Pea Ly recassve femuia © ten ete AG MoI une ce uber oF acciens;~ ——_taer Me a 71040 . 137 on $ 2 0-36 3 42 0.53 4 4 a 5 4 (as. ¢ 4 6.00 ai 1 us oe 3 SEMTUN ORT ORE HHO CONEmAt=TETO fe cath, ke Mbp en tet € Let fe) = E09, Pee dlenole the age OF A member PF Are (a, bio) Clag. Ler PM (2d= TM PH AF dencle tre WWE OF ARE COnerponding member oF the (aioyt> 056. Arak rh cre, Ret mgs and PMs a ir an aeiteary number, men 2 rcp ee FZ pe ae ea sy * ane ke 2 reer eI orbit cCP2)-Po) Because EMCI) = py Le pit cl i-m)> . " . ete) = 6p! 4 aS Ura) Po} e nz = Uae) te KeW aye Pays Mat Cer Te) Examples pros, Rss Petemine the Aett four probabuner. waits Poh = 0.6 Po = (4086S = 9 x6087 > ey ah) a+ oF ie aster ve ie b- (VED LI 2 wy & ree +e per Lath | £245) 4- tes e e = 0.36267 (f+L 2) = 220% Pe = 0.30006 (144.4) = o.r7eu04 fo = OMEN (444.1) =o, naz02 PE =_fe y b1,2,.. Ite Pl = 0 by defniton WT = 0.302406 (i= 0.362887) pe = oTUGN (Jr4-t) = o-27680 = o-un4 6rd P= Om (Jest) = oto Scanned with CamScanner 1 : [re = tes (++ )] illness 2 Vargo & eax (Tae CUinpstan. (S010) Go PM 20,6 acitranly . ee ©) (0302106) _ 0,189860 eS = oso sco (44 £2) = onorse a Peet = Pe = 0.Mor 1 3 Morse (4444) = 0.055 376 = ot B89. o.caten (roam ne sy T71, B= OM Ps Hook sexamie . ( res fel A mete 2 OT (cen (2221) ; = (2) 03) = 0.6 cet orkteanly be GD. waeeee (es) uay fey Sa & + re Gr fe) THO = oss Tat can) 7 = Per (¢ a #5) a) EIS) ~ (2) % bos (e- 228) Co.ara3) = 0.106694 - Dai (o - oz) Centogesy) = 0-026674, pace 1,20, BPD, 1>-1 alee posing “Bayy sia HOF for Hoe evterdeel Aruncared negae || TO a Liroial oa. tate ay e> ond c >-1, wut rao, |Z te hz 2 (5) ft HEY BH ine SuCceiVe VaWUeS of te eIVED by (69) ate, for: any ry, rontve and 262, Pe = fy (mC2)] = 1-3 + 4 Pm (ey 2 =| Scanned with CamScanner Theorem: Tze le tre primary amy | metier oF AE (oiln) clay the recunive Formula Tr fe +R Cart) F39 J Retain ExOMAe aso eA eA‘ shoes Fa Do = pr s=0) = PLO> =P (Pa tord = % Cfo) end ttf) Theorem 7-3) For ory compbund dit. 95 = te Cf) where Pua) [Fme tOF OF the primary dif. and fo is he probability thay re Seeonday dit. fares on fhe value Ber » Byorae ‘tne potion ETB dish, Ae3 5 re ~05, P=) for 1 c= 085255 6, = 0.10E694, Fs = 0.026674 9p = exe [-X-0)) = 0.099787 fre yosson pray ash. 1=0, b= > 25.) GD) Froese \= 0 a BE Fy OK 2f, 3 frees 9) = 20D 0,95 3553 (o.4g787) = ©. 27488 T 92 = 30) 0, e53553 Contzrys8) + X2) osiogéo4(o010781) z z = 0.172163 y= » 0, 853553 (0.179163) + 2 o.toc4ou (0 tena) + 3) 9.02674 (0.049787). 2 = 0. Ley \exanele Demoniwe fre FOSFON — Loxattinse dist 5 a neyative (ahornid) aistibution he negawe Lnomicl dist. har Rae PC = C= Boa rs (2) piston (A) Pua (2) =) Lovantinic (8) tw Chm) = OPT Al Gd Vy =e afi aheeevd iy An FB) “8D I (1- Pav) § = [1-6 C24)) bar = i-# G@pjt whee 6 =A Inter) hewn 7.4 cumosetre pe Pu (2 59) Sabshes tw (250) = BC O(2-0) bocay = Po CP (2)5 OCI) I tte = Pu Cte (250) = fu (fot (Fo) Pm (250) = BY olfet (nf) Mh (a-ry = be Clete) Lty @-y Pa CRY (a) 5b Ufo) #2 0.34N42) 1-04 2678 F = 0.010670 40 = ep 25 (1-06)] = 0.01978 (2E) bade ® % = 2h, == TD era L= 00-6) 9) = 250) o.2unay (opyorbr = 0127487 T a =. WU). 0.341ye (04127987 + 2S) 0,042678 (0.01777) z = = o.h9W! 93. = 25 o.syuer (atrorely+ 22) O.0U2E® (0.12487) ez 3 +258) p,opr0( vows) = (84, Scanned with CamScanner | Pompe. =2 and s) har a compbund POISON dist witte Ay=2 EINE ay WU)=o2 a (2) 20.5 acy =[ Pay) uty user 06 Se ete = 2) = 0,18 U- ce) 30) = ot 4a (2) for P>0, F>-1, r40 Death = tes tal 6 Y= OL In the = Mt (Ci fans = (it pt 5 4 0.40.2 + fe fee Mave a = 0.4(0.7) +4 0.4 = 0. vo taey? u oes As = 04 (01) + 0606) = 040 aod Z ? = 0.09 { - Uses 44 = 0M) + 0.6001 a = 20 sn {U-FGD)E fF AZ5 Ord 4, 20.08, ha OM, Ay = AH, 4y 20 tr 2 = EZ indy peltew-n), weber tne mean and second ard atic central moments OF te (520) fue ies) the cretound POrSson apt - 1 } eldatixed frequency qiAnibUsons Hoen= dm) pl Frequency. Dists My =0t = Am! pray Goreray tinea Frequency My = Ams Let U(8)= rl @ £0) Wi eae eS Peeps frat e)ute) ao oF Fc2) P WM =o Amn = 2 Pleles) ules) Pee fre () ute) do oF he = Dre (9s)ULBr) (re ny* A [23.2 bed rorsson Do. Bae re au aed, eA OBEN: sheorem 7.8. If the probabil Qeneraing function, i =) 2 * eS for a random vanale X, then PON ogo anges 3 te (2D= YE ilne) and @ x= Pet Nogman TEA =)43 = Sab 2M (ORY Px (2) = ER*) we ce™Mt) cele mH) 7 REO EME yy cagteen are COLE | = @x (ilo) ca) 4 y x(eye Ele? *) -E[Ce) *} ene 7S = Px (ei®) B nen a = Zpeo Int for i=l 2)--F rs ae a x f [theorem Tea svpose PCa) Ts amired pomN rye bsice = EC 2M= eed ar (Oiler - 1} atin a Fiivey\ avtive wang oth. The ¢02) Bet may © gauoa compound Poison FOE anal may ve exrrened iB pay] erleCad eq Ai Co (2-1) f in re gE Pate a PF, Ma O=-0 5 R(a) W ungve = exp [2 NELD— Ea] a nes 0F cOmpOINE ond. IwHed ROIE.ON a. poet _comround sec = ee {A fel2r-i)y e ae epaive wromiay waa Garner ASSEA 5 eter Zh, NMEA veyman-A totsson roisson pouson-tnverre Gaurion | eNWEC eS) | Ives Gouin Scanned with CamScanner Ny be the number OF claims treduced by the 3th ‘entity Pu (2) = (pn CJ” Pe C2D= LPs C29) = Low C2] > weinitely divise Example. Srour oF 300 employer €- 0.2, c= 0 the eof of NY =? DRiermNe ne Frequency AT. for a gRUP oF SO Such individuals pur cey = Lis (2) > fe G7 "y RB = [03 (24) une which is negative binomial wi, P ¢ 3 aed, (067 I Scanned with CamScanner envenwass or He CabIL elas pearatons * % a 6 roratwace pouSO er “ qe 0 A Aro ‘2T PION 0 A 4 70 2 wigon — Arbinary 0 & 4 0

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