Compound Event | Definition, Probability & Examples
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Study.comJennifer Beddoe
Compound Event | Definition, Probability & Examples
Explore what a compound event is and the types of compound events. Discover the probability of compound events with examples. Learn about mutually exclusive and inclusive compound events. Explore possible sample spaces and ways to calculate theoretical and experimental probabilities for compound events.
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Assume the aggregate-loss distribution follows a compound distribution with the claim frequency distributed as a Poisson with mean 569 , and the claim severity distributed with mean 120 and standard deviation 78 . (a) Calculate the mean and the variance of the aggregate loss. (b) Calculate the probability that the observed aggregate loss is within 6 % of the mean aggregate loss. (c) If the mean of the claim frequency increases to 620, how might the claim-severity distribution be changed so that
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