Actuarial Mathematics¶
Bowers, N. L., Gerber, H. U., Hickman, J. C., Jones, D. A., & Nesbitt, C. J. (1997). Actuarial Mathematics.
Cited by¶
1 citation across 1 artifact.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Law of Large Numbers
- The loading covers roughly eight standard deviations of the pooled per-policy outcome, and the book is not merely profitable in expectation but overwhelmingly likely to be profitable in fact.
This sourceDevelops insurance risk pooling, in which the standard deviation of the average claim cost falls as the reciprocal square root of the number of independent policies, and sets the premium loading against it.
- The loading covers roughly eight standard deviations of the pooled per-policy outcome, and the book is not merely profitable in expectation but overwhelmingly likely to be profitable in fact.
Verification¶
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Registry ID ref:4e731dffc56c · see in the full table