Nonparametric Estimation of the Probability of Ruin.
Abstract
The finite and infinite horizon time probability of ruin are important parameters in the study of acturial risk theory. This paper introduces procedures for directly estimating these key parameters from a random sample of observations without assumptions as to the parametric form of the distribution from which the observations arise. The estimators introduced apply to most of the classical models in which ruin probabilities are used and also apply to a much broader class of models. The procedures are based on the concept of sample reuse, and old idea in statistics which is becoming more popular due to the widespread availability of high speed computers. In this paper, the almost sure consistency of the estimators is established, Further, finite sample properties of the estimators are investigated in a simulation study. Keywords: Reverse martingdale, Bootstrap.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1985
- Accession Number
- ADA153523
Entities
People
- E. W. Frees
Organizations
- University of Wisconsin–Madison