An actuary is comparing two credibility approaches for a large commercial insured. Method 1 (classical limited fluctuation) requires n0 = 1,082 claims for full credibility. The insured has 1,200 claims. Method 2 (Bühlmann) gives Z = 1,200 / (1,200 + 400) = 0.75. Why do the two methods give different results for the same insured?
