Howell Whittaker
08/15/2024 · Elementary School
3 For a group of policies the total number of claims arising in a year is modelled as a Poisson variable with mean 10 . Each claim amount, in units of \( £ 100 \), is independently modelled as a gamma variable with parameters \( \alpha=4 \) and \( \lambda=1 / 5 \). Calculate the mean and standard deviation of the total claim amount.
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The mean of the total claim amount is 200, and the standard deviation is approximately 70.71.
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