A Simple Estimation of Parameters for Discrete Distributions from the Schröter Family
Friday I. Agu, Ján Mačutek, Gábor Szűcs
Statistika, 103(2): 246-251
https://doi.org/10.54694/stat.2022.42
Abstract
One of the common challenges in actuarial mathematics is finding a model for the number of claims and claim severity. We focus on one of the suggested models, namely, on the Schröter family of discrete probability distributions. Furthermore, we introduce a simple and easy-to-compute parameter estimate for this family of distributions, which can be used especially as initial values in optimization algorithms that are needed to compute other estimates.
Keywords
Discrete probability distributions, Schröter recursive formula, parameter estimation, aggregate claim distribution
