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A claim count random variable N has a distribution that is a member of the (a, b,c) class. The probability mass function at k is denoted as Pk, and the probability generating function (pgf) is denoted as P(2). (a) Show that the pgf for the corresponding zero-modified distribution can be expressed as: P. M(z) = pm + 1 (P(z) – Po). Start with PM (z) = E[zNM), where NM denotes the number of claims for the corresponding zero-modified distribution. (b) Suppose N has a Poisson distribution with variance 1. Using the result from (a), show that the pgf for the corresponding zero-truncated Poisson distribution can be expressed as: PT(z) = enten
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A claim count random variable N has a distribution that is a member of the (a, b,c) class. The proba...
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