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Policy holders of an insurance company have accidents at times of a Poisson process with rate…


Policy holders of an insurance company have accidents at times of a Poisson process with rate λ. The distribution of the time R until a claim is reported is random with Policy holders of an insurance company have accidents at times of a Poisson process with rate...

(a) Find the distribution of the number of unreported claims. (b) Suppose each claim has mean µ and variance σ2. Find the mean and variance of S the total size of the unreported claims.