The use of Panjer's algorithm has meanwhile become a widespread standard technique for actuaries (Kuon et al., 1955). Panjer's recursion formula is used for the evaluation of compound distributions and can be applied to life and general insurance problems. The discrete version of Panjer's...

In this paper we consider the interval availability distribution of a two state single unit. WE fit the interval availability distribution directly to a Beta distribution, such that the probability of nil and a hundred percent availability is correct as well as the espectation and the variance