12.07.2015 Views

CREDIBILITY - PROBLEM SET 7

CREDIBILITY - PROBLEM SET 7

CREDIBILITY - PROBLEM SET 7

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19 continued#The empirical estimate of the variance of \ is "&&ß $$$ Ð##!Ñ œ "!'ß *$$ .In the semiparametric empirical Bayes credibility model, we use the empirical estimate of IÒ\Ó for .,so that .s œ##! . We also know that Z+

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