An insurance company supposes that the number of accidents that each of its policyholders will have in a year is Poisson distributed. The rate parameter of the Poisson is also a random variable which has an exponential distribution with parameter 2.3. What is the probability that a randomly chosen policyholder has exactly 3 accidents next year?(Hint: You can use the following result for thenth moment of exponential random variable: If Z ∼Exp(μ) , then E (Zn )= n!/μn)
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