How common sense can be misleading in ruin theory

Anişoara Maria Răducan, Raluca Vernic, Gheoghiţă Zbăganu

Abstract


Some graphical representations of ruin probability computed mainly for Erlang type claims suggested an idea that intuitively seems to be true: if the first claims are small then the chance to get ruined is also small. However, for other claims this does not hold, as is shown by counterexamples.

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DOI: https://doi.org/10.52846/ami.v43i1.847