A Simple Estimation of Parameters for Discrete Distributions from the Schroter Family

FRIDAY I. AGU, Jan Macutek

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.