When Inflation Causes No Increase in Claim Amounts

Table 3

Point estimates and approximate 95% confidence intervals of r and 𝛼 using the full likelihood and using the first approach. Note: the true parameter values are 𝑟=0.05, 𝛼=2.

	Full likelihood approach		First approach
Parameter	Estimate	Asymptotic CI	Estimate	Bootstrap CI
𝑟	0.0503	(0.0353;0.0654)	0.0526	(0.0375;0.0702)
𝛼	1.9858	(1.8328;2.1389)	1.9858	(1.8246;2.1495)