Poisson processes and compound Poisson processes in insurance management
Dominika Crnjac Milić
Abstract
Open-access reader
Dominika Crnjac Milić
Abstract
Open-access reader
Some assumptions with respect to the number [N(t)]t>0 and the amount [Xi]i=1 of damages are introduced in the paper. It will be assumed that the average of the number of damages is a Poisson process, which leads to a compound Poisson process [S(t)]t>0 for the total damages.
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Some assumptions with respect to the number [N(t)]t>0 and the amount [Xi]i=1 of damages are introduced in the paper. It will be assumed that the average of the number of damages is a Poisson process, which leads to a compound Poisson process [S(t)]t>0 for the total damages.
Key concepts: Damages, Compound Poisson process, Poisson distribution, Compound Poisson distribution, Poisson process, Poisson regression, Process (computing), Applied mathematics