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Discrete Time Markov Reward Processes a Motor Car Insurance Example

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DOI: 10.4236/ti.2010.12016    5,397 Downloads   10,162 Views   Citations

ABSTRACT

In this paper, a full treatment of homogeneous discrete time Markov reward processes is presented. The higher order moments of the homogeneous reward process are determined. In the last part of the paper, an application to the bonus-malus car insurance is presented. The application was constructed using real data.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

G. Amico, J. Janssen and R. Manca, "Discrete Time Markov Reward Processes a Motor Car Insurance Example," Technology and Investment, Vol. 1 No. 2, 2010, pp. 135-142. doi: 10.4236/ti.2010.12016.

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