Explain and apply Bayesian (greatest accuracy) credibility.
Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Credibility. 11 min read, ~1,578 words.
Bayesian premium is, computed from the posterior of the risk parameter. Bühlmann is the least-squares linear approximation: with,. EPV; VHM; EHM. Bühlmann-Straub with exposures: replace with total exposure;. Conjugate pairs collapse Bayesian to Bühlmann exactly: Poisson-Gamma, Binomial-Beta, Normal-Normal, Exponential-Inverse Gamma.
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 5a
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