Explain and apply Bayesian (greatest accuracy) credibility.

Free SOA Exam ASTAM (Advanced Short-Term Actuarial Mathematics) lesson in Credibility. 12 min read, ~1,838 words.

Bayesian premium is, computed from the posterior of the risk parameter. Bühlmann is the least-squares (squared-error) linear approximation: with,. EPV; VHM; EHM. All of, come from the prior structure, never from the sample variance of the data. The unconditional variance of equals, not alone.