#insurancecoverage #policyholder #insuranceadvice #buchalter #liabilitycaps #additionalinsured #contracts #insurancerecovery #insurancelaw | Jeanine M. Donohue
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In a portfolio of insurance policies, the number of claims for each policyholder in each year, denoted by N, may be 0,1 , or 2 , with the following pf: fN(0)=0.1, fN(1)=0.9-θ, and fN(2)=θ. The prior pdf of Θis fΘ(θ)=(θ^2)/(0.039), 0.2<θ<0.5 . A randomly selected policyholder has two claims in Year 1 and two claims in Year 2. Determine the Bayes estimate of the expected number of claims in Year 3 of this policyholder. | Numerade
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