Parameters of the (a,b,0) and (a,b,1) Classes
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Severity, Frequency, and Aggregate Models. 8 min read, ~1,246 words.
Recursion:. Only three families satisfy it: Poisson, binomial, negative binomial. Sign of identifies the family: 0 = Poisson, negative = binomial, positive = negative binomial. Geometric is NB with (so ). (a,b,1): same recursion from, but and set independently. Includes zero-truncated, zero-modified, and logarithmic ( ). Always verify against the...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2e
Browse all free Exam FAM lessons or jump into free Exam FAM practice questions.