Classes of Distributions and Their Relationships
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Severity, Frequency, and Aggregate Models. 10 min read, ~1,516 words.
Exponential Gamma Generalized Gamma and Exponential Weibull Generalized Gamma, with lognormal a limiting case of generalized gamma. Weibull = power transform of exponential: where; Weibull at and gamma at reduce to exponential. Power transform CDF rule:, never. Lognormal = exponentiated normal. Pareto = continuous mixture of exponentials with a gamma-distributed...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 2c
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