2,305 claims are needed.
17.3 λ0 = 1,082.41. μ = 600. Estimate the variance as 752. The standard for full credibility is 1,082.41(75/600)2 = 16.913. Z = . The credibility pure premium is
17.4 ; where s is used in place of the customary negative binomial parameter, r. Then
The standard for full credibility is
Partial credibility is obtained by taking the square root of the ratio of the number of claims to the standard ...