Question

15 Consider a block of N-10000 risk units j. each distribution of claims of compound mixed Poisson type baring a same expected number n,-0.1 of claims. The standard Ht ion of the mixing variable q, of each risk uni js o 02. re, the joint claim size d.f. is approximated by a discrete monetary unit, say £1000, in ntble, where s, is the probability that the size of a claim as given in terms of some suitable Z, 16 s, 0.8 0.1 00S002 003 Calculate x and ơx for the whole block in the following two cases: al assuming that the mixing variable q, qis the same for all risk units, but that the risks are conditionally independent given the value of the mixing variable q; (b) assuming that the mixing variables q,are mutually independent.

Answer 1

Answer:

Two ways to increase the statistical power of an experiment overlap in the two sampling distributions for null hypothesis and alternative hypothesis Larger the sample size, the higher the power 2. Decrease random error - Reduce the variance: smaller variance yields higher power. Power is higher when the standard deviation is smaller than when it applied consistently.