2014.Fall 25 b
I don't understand the solution the CAS provides. What formula is this supposed to be? I thought we would use:
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Comments
This question spans several readings, namely Bahnemann, Clark (Casualty Per Occurrence section) and Bernegger. Thinking about it, this question fits the Clark reading the best, so we'll move it there shortly.
We can't use the formula you reference because we only have the limited severity distribution - we are missing its associated probability distribution.
Try returning to this question after you have read the Exposure Rating section in Clark.CasPerOcc
You are right. I got it after reading ahead. Thanks.