Here we present an application of two maxentropic procedures to determine the probability density distribution of a compound random variable describing aggregate risk, using only a finite number of empirically determined fractional moments. The two methods that we use are the Standard method of...

A risk manager may be faced with the following problem: she/he has obtained loss data collected during a year, but the data only contains the total number events and the total loss for that year. She/he suspects that there are different sources of risk, each occurring with a different frequency,...