Hi, When answering a question on determining the adjustment coefficient where the claim distribution is Exponential and the aggregate claims process is Poisson, would full marks be awarded if using the following functions from the notes: (alpha is the parameter for exponential) R = alpha*theta/(1+theta) or alpha - (lambda/c) Or would we have to show all steps ie. from: Mx(R) = 1 + (1+theta)m_1 R ? Thanks in advance!
Hi, Good question! I appreciate that this example is given in the notes, but would recommend that you show all steps. This will show the examiner that you understand the steps, and if you do make a mistake then you will gain interim working marks. Alvin.
