| dc.description.abstract | The project focuses on modeling and estimating loss claims from Insurance company.
Generalized Pareto distributions family was used and compared to come with a best fitting
distribution. These distributions include Exponential, Pareto and Uniform distribution.
In the methodology the project shows how to develop the distributions from one distribution.
Three methods for estimating parameters of the distributions were used i.e .the maximum
likelihood method, the method of moments and L moment method. Properties of each
distribution were shown. Then measures of risk were derived.
In application, Using the three methods of estimations to come up with the best fitting
distribution. I’ll also compare the three methods of estimations and come up with the best
method. In addition .Using the best two distributions I’ll plot histogram and QQ plot to come up
with the best distribution. Thereafter I will estimate the confidence intervals of the chosen
distribution parameter estimate using the bootstrap method. | en_US |
