Bayes’ Theorem. Prior distribution. Posterior distribution. Conjugate prior distribution. Derivation of the
posterior distribution for a parameter. Loss functions: definition. derive Bayesian estimates of parameters.
Credibility theory and the use of collateral data in estimation. Derive credibility premiums using the
empirical Bayes credibility approach: EBCT I and EBCT II. Derive credibility premiums using Bayesian
approach to credibility theory. Conjugate Priors: Gamma-Poisson model (GPM) and Normal-Normal
model.
