ASM PE3 #30

lundi 1 septembre 2014

I was wondering in the solution to this one if anyone could explain how we know that the fitted probability of 1 or 2 must equal 15/85 of the fitted probability of 0? I thought it'd be more like (85/100)P(N=0|N<3)+(15/100)P(N=1 or 2|N<3)=1? It seems like we assume that 15*P( 0 claims)=85*P(1 or 2 claims)? I'm not seeing exactly where the 15 and 85 play into this.



Thanks.





ASM PE3 #30

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