Probabilistic Model for Statistics of Total Damage on Different Insurance Items
Mirvari Hasanaga Hasratova National Academy of Sciences of Azerbaijan of Control Systems, Baku, Azerbaijan Abstract This paper deals with the tariff calculation model for estate insurance using the three years' loss portfolio of BUTA insurance company. Based on company policies’ data model of total damage is constructed. Mathematical formulation of this problem requires the use of several parameter estimating methods and hypothesis tests. The results have statistically been analyzed for making exact decision of tariff's rate. Finally, estimating tariffs are compared with the corresponding actual data. KeywordsInsurance, Damage, Cost, Probabilistic Model,Hypothesis Testing, Maximum Likelihood Method