oo, the mean of the Pareto converges to k. C/ 4 Study Manual-!! 0 ASM 2. 1. For a commercial fire coverage • In 2009, loss sizes follow a Pareto distribution with parameters a= 4 and (). • In 2010, there is uniform inflation at rater. • The 65th percentile of loss size in 2010 equals the mean loss size in 2009. Determine r. 2. [4B-S90:37] (2 points) Liability claim severity follows a Pareto distribution with a mean of 25,000 and parameter a= 3.
A.S.M. study manual for Exam C/exam 4 : construction and evaluation of actuarial models by by Abraham Weishaus.