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Mathematical Problems in Engineering
Volume 2015, Article ID 874101, 13 pages
Research Article

Homogeneous Discrete Time Alternating Compound Renewal Process: A Disability Insurance Application

1Dipartimento di Farmacia, Università “G. d’Annunzio” di Chieti, Via dei Vestini 31, 66013 Chieti, Italy
2Guglielmo Marconi University, Via Plinio 44, 00193 Roma, Italy
3Solvay Business School, Universitè Libre de Bruxelles, Avenue Franklin D. Roosevelt, CP 145/1-21, 1050 Brussels, Belgium
4Dipartimento di Metodi e Modelli per l’Economia, il Territorio e la Finanza, Università di Roma “La Sapienza”, Via del Castro Laurenziano 9, 00161 Roma, Italy

Received 19 March 2015; Revised 1 June 2015; Accepted 11 June 2015

Academic Editor: Babak Shotorban

Copyright © 2015 Guglielmo D’Amico et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


Discrete time alternating renewal process is a very simple tool that permits solving many real life problems. This paper, after the presentation of this tool, introduces the compound environment in the alternating process giving a systematization to this important tool. The claim costs for a temporary disability insurance contract are presented. The algorithm and an example of application are also provided.