Model insurance claim frequency and severity.

Free CAS MAS-I (Modern Actuarial Statistics I) lesson in Statistics. 9 min read, ~1,365 words.

Frequency: Poisson ( ), Negative Binomial (over-dispersed), Binomial (under-dispersed). The class covers all three. Severity: Exponential, Gamma, Weibull, Lognormal, Pareto. Choose by tail weight: lognormal and Pareto for heavy tails. Aggregate losses: with and. Parameter estimation: MLE is default; method-of-moments is a sanity check. Compare models via AIC, BIC, or...

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