Perform calculations for sums of compound Poisson models.
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Aggregate Models. 26 min read, ~3,864 words.
If are independent, then is with and. The combined severity is a mixture with mixing weights, not a convolution. and bypass the mixture entirely. MGF factorizes:. A single compound Poisson with mixture severity decomposes into independent compound Poissons at rates. The probability mass of the aggregate follows the convolution form...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2c
Browse all free Exam ASTAM lessons or jump into free Exam ASTAM practice questions.