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. 11 min read, ~1,615 words.
Recursion:. Only Poisson, binomial, and negative binomial (with geometric as a special case) satisfy it. Sign of identifies the family: 0 = Poisson, negative = binomial, positive = negative binomial (or geometric). Geometric is NB with, so and the recursion ratio is constant (memoryless). Recovery: Poisson; binomial,; NB,.
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 2e
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