2018 Q13b)
For the solution, why aren't we diving the by (1-Fx(A/tau)) & (1-Fx(A)) for tau*E(X) and E(X) when deriving impact of inflation?
For the solution, why aren't we diving the by (1-Fx(A/tau)) & (1-Fx(A)) for tau*E(X) and E(X) when deriving impact of inflation?
Comments
Nevermind, I got it. It's because it cancels out with impact of claim counts.