A credibility estimate combines a risk's own observed experience with a collective or prior mean, in the form . The credibility factor is the weight given to that risk's experience. Bayesian credibility starts with a prior distribution for a latent risk parameter, updates it using observations, and estimates the conditional risk mean by its Bayesian posterior expected value under squared-error loss. In conjugate models this posterior mean can have exactly the displayed credibility form.
For the unequal policy exposures, define
Conditional independence of the binomial distribution observations gives the likelihood, up to a factor not depending on ,
Multiplication by the beta distribution prior therefore gives Beta-binomial conjugacy:
Both posterior parameters are positive, since and the prior parameters are positive.
The conditional target is . To verify the quadratic-loss rule directly, for any proposed estimate and observed data ,
The variance term does not depend on , so the unique Bayes estimator under squared error loss is the posterior mean. Applying the beta mean formula gives
It is also the posterior expected future claim count, by the tower property of conditional expectation.
Let be the collective prior claim probability and the observed claims per policy. Then
Therefore the exact beta-binomial credibility with unequal exposures is
The individual experience must be weighted by exposure: is the policy-weighted frequency, not the unweighted average of when the differ. The factor multiplies next-year expected counts after scaling both component probabilities by .
Let , , and be the count, claim-size and aggregate probability generating functions. Independence in the aggregate claims model gives
The Panjer claim-count class recurrence can be written . Multiply by and sum to obtain
Using the chain rule in then yields
The coefficient of on the left is , where the term is zero. On the right it is . Rearranging gives the Panjer recursion
The initial value is because all claim sizes are positive: zero total loss occurs exactly when . Only already computed aggregate probabilities occur on the right. The count normalization determines from as well: with and , we have and . The assumed valid count law makes this sum finite.
Finally must be positive. If it were zero, the recurrence would make every zero, contradicting normalization. At the recurrence therefore gives
This proves the sign constraint without assuming any particular count family. The three parts below also provide explicit initial probabilities for the aggregate recursion.
Let for independent and identically distributed random variables with distribution function . Then . Membership in the maximum domain of attraction of a nondegenerate distribution function means that some deterministic and satisfy
or equivalently at every continuity point of .
Under the stated convergence, put , , and . The Slutsky theorem says that combining a sequence with convergence in distribution with sequences converging in probability to constants preserves the corresponding sum, product and ratio limits, provided a limiting denominator is nonzero. Applying it here gives
The limiting distribution function is , continuous for every real because is continuous and . Consequently,
Let , and . The proposed least-squares estimators satisfy the sum-to-zero constraints because and . Define . Direct summation gives
Now write any other admissible parameters as , , , where . Expanding the ordinary least squares criterion, the cross-products with vanish by the preceding identities. The cross-products between , and vanish by their zero sums. Consequently
Every added term is nonnegative and all vanish only at , . This proves the unique constrained minimum, with
The additive-model residual sum of squares and intercept-only residual sum of squares are therefore
The same orthogonality gives the analysis of variance identity
Fitting factor B alone yields fitted values and residual sum . Fitting A alone gives residual sum . Adding B after A then reduces it to , a reduction of again. The reduction due to B is in either order. This is balanced factorial orthogonality; it generally fails for unequal cell replication.
There are observations. The additive model estimates independent parameters, so the missing degrees of freedom are A: 2, B: 1, residuals: 8. The individual requested residual sums are below.
To check for an interaction, extend the normal linear model to , with each row and column sum of zero. Equivalently, fit the six unrestricted cell means. Its residual sum of squares is the within-cell sum
The interaction adds parameters; the cell-means residual has degrees of freedom. Under the no-interaction null hypothesis and the independent equal-variance normal error model,
The numerator and denominator arise from orthogonal Gaussian projections, proving the exact F-test. Reject for a sufficiently large value. The printed additive analysis of variance table does not supply , so it cannot determine this test statistic numerically; the replicated cell data would do so.
Use the usual Krull–Schmidt theorem setting, in which indecomposable summands have local endomorphism rings; the paper's rings satisfy it for the subgroups involved. The relative projective module condition for means that is a direct summand of a module induced from , equivalently, is a summand of . A vertex of an indecomposable module is an inclusion-minimal such subgroup. A source of an indecomposable module at its module vertex is an indecomposable -summand of such that .
Existence of a module source follows by decomposing and using Krull–Schmidt theorem on the induced decomposition: the indecomposable summand must occur in the induction of one indecomposable summand . Such has module vertex as a -module, since relative projectivity of for a proper subgroup would make relatively projective for that subgroup.
In the paper's modular coefficient rings, an indecomposable module is a trivial source module when its module source is the rank-one trivial module of its module vertex. It is then a summand of , a permutation module. Conversely suppose is an indecomposable summand of a permutation module. Restriction to a module vertex is a sum of modules , one for each -orbit of the permutation basis. For a -group , each transitive permutation module is indecomposable: over it has simple head of a module over the local ring , and over a nontrivial splitting would give a nontrivial splitting after reduction. A module source must be one of these summands by Krull–Schmidt theorem. Its module vertex is , whereas is relatively -projective. Thus , and . Therefore trivial module source is equivalent to being an indecomposable permutation-module summand.
The rank-one formulation uses the paper's coefficient rings. If the earlier general coefficient-ring wording were applied to a disconnected ring, it would need qualification: for and , is an indecomposable summand of the permutation module , but is not the rank-one trivial module . One can instead allow indecomposable summands of the trivial coefficient module as module sources in that generality.
For the homomorphism request, take . Frobenius reciprocity and Mackey decomposition give
The summand for is generated by the sum of the cosets in the -orbit of . The identical orbit-sum construction over gives one copy of per double coset. These are free bases in both characteristics, since invariance means coefficients are constant on orbits, with no division by orbit size. Hence
The same argument applies to direct sums of coset permutation modules.
If is a trivial module source -module, choose a permutation lattice with . Its projection is an idempotent . The endomorphism reduction is surjective by the preceding calculation. Its kernel is , and the endomorphism algebra is complete over . By idempotent refinement theorem, lifts to an idempotent . The lattice is a permutation-module summand, hence a trivial module source lattice, and reduces to .
To prove uniqueness within the class of trivial module source lattices, let be two such lifts. They are summands of permutation lattices. Lift a modular isomorphism and its inverse between them by the same homomorphism-surjectivity argument, inserting the summand projections on either side. The lifted composites are identity modulo and therefore invertible over , by Nakayama lemma or the determinant criterion. The lifted maps are consequently inverse up to an invertible composite and give . Thus each trivial module source module has a unique trivial module source lift up to isomorphism. This is permutation homomorphisms lift through modular reduction; uniqueness is not claimed among arbitrary lattice lifts.
Write . An idempotent is an element with ; it is central idempotent when it commutes with every element of the ring. In a commutative ring centrality is automatic. Two idempotents are orthogonal idempotents if . A nonzero primitive central idempotent cannot be expressed as the sum of two nonzero orthogonal central idempotents; this is primitivity in , not necessarily primitivity in .
A block of a group algebra is an indecomposable two-sided direct-summand ideal of , equivalently an ideal with a primitive central idempotent. Here is the equivalence. If as two-sided ideals, then . Write with . Multiplication by this equality shows that is the identity of , that is the identity of , and that are orthogonal central idempotents. Conversely a central idempotent gives . Splitting the ideal further is therefore equivalent to splitting its central idempotent further.
For uniqueness, suppose are decompositions into primitive central idempotents. For each ,
is an orthogonal central-idempotent decomposition. Exactly one summand is nonzero, and that summand equals . Applying the same reasoning to the corresponding gives . Thus the blocks, and their identities, are unique up to ordering. Existence in the paper's coefficient rings follows from finite-dimensionality over , and over from completeness and idempotent lifting of the decomposition modulo its maximal ideal.
Over , a principal indecomposable module is an indecomposable summand of the regular left module , equivalently for a primitive idempotent of . Put , the Jacobson radical. The head of a module is nonzero and semisimple. It is simple: projectivity gives a surjection
whose kernel consists of maps into and is nilpotent, since a product of such maps sends into . If the head of a module split, a nontrivial projection on it would lift by idempotent lifting to a nontrivial projection on , contradicting indecomposability. Every maximal submodule contains , since annihilates simple modules. The simplicity of the head of a module now proves is the unique maximal submodule, and is its head of a module's projective cover.
Choose the simple modules , with corresponding projective covers . Our convention for the Cartan matrix of a group algebra is
where brackets denote the multiplicity in a composition series.
For the final two unheaded requests, retain the additional hypothesis . Choose a central subgroup of of order . Every element of centralizes , and so does every element of ; hence . Set , so is central and , and .
To lift a central idempotent of this quotient, first lift it as an idempotent by idempotent refinement theorem. Since is central, . Multiplying a representation on the left and right by gives
The other off-diagonal corner vanishes likewise, so is central. Two central lifts of the same idempotent coincide: their mismatched products and are idempotents in the nilpotent kernel and therefore zero. Primitivity is preserved because orthogonal idempotent decompositions lift. Thus the central -quotient gives a bijection of block idempotents.
The quotient still satisfies the required hypothesis for , because the image of centralizes . Induction on therefore proves bijects the block idempotents of and . The centrality argument is essential: a general nilpotent algebra quotient need not give a bijection of central block idempotents.
For the Cartan matrix of a group algebra, every projective -module is free over : is free over , a projective -module is a summand of a finite free -module, and finite projectives over the local ring are free. If is a principal indecomposable module, is a principal indecomposable module over : an idempotent splitting of its endomorphism ring would lift and split . The quotients of its filtration
are all isomorphic to as -modules, by multiplication by the corresponding power of . All simple modules are annihilated by the nilpotent ideal . Hence , with the natural indexing of simple modules, and . Iterating over gives
This is blocks and Cartan matrices under central p-quotients. The extra hypothesis is still in force: for example in characteristic three does not satisfy it, and its Group algebra Cartan matrix is rather than .
The dual linear program is the minimization problem
Indeed, for the optimization Lagrangian bounds the primal objective above on its feasible points. Its supremum over is finite precisely when , and then equals . The two labelled parts below establish the relevant weak duality and strong duality conclusions.
For the subsequent infeasibility argument, introduce nonnegative slack variables and the convex cone
This is generated by the columns of and the coordinate vectors. Here is why this finitely generated cone is closed. Any representation with a minimal number of positive coefficients uses linearly independent generators: otherwise subtract a suitable multiple of a dependence until one positive coefficient vanishes, preserving nonnegativity. For each fixed independent selection of generators, its nonnegative combinations form a closed set, because the inverse coordinate map on its span is continuous. There are finitely many selections, so their union is closed. This is the closedness of finitely generated cones used in Farkas' lemma.
When the primal linear program is infeasible, . Let be the nearest point of to , and set . The minimizing property gives for every . Taking gives . Consequently
In particular and . Rescaling by the positive number produces the requested Farkas' lemma certificate:
Now a feasible point of the relaxed inequalities would satisfy
Since , the sum of the nonnegative is positive. Thus robust infeasibility under uniform constraint relaxation gives
The ellipsoid method makes progress by reducing the volume of a containing ellipsoid. A nonempty linear polyhedron may have empty interior, so small volume alone cannot certify that the original system is infeasible. Relaxing the inequalities remedies this difficulty, but must not make an infeasible system appear feasible. The displayed positive gap proves exactly that sufficiently small relaxations preserve infeasibility. For rational input, determinant bounds give a Farkas' lemma certificate of polynomial encoding length, so a sufficiently small rational relaxation can be chosen from the input encoding length. Together with a bounding box and bounds on the volume of a relaxed feasible system, this lets the ellipsoid method distinguish infeasibility from a feasible system of very small or zero original volume in polynomial time. The certificate argument alone does not assert a polynomial precision bound for arbitrary unencoded real coefficients.
An abelian category is an additive category with kernels in a category and cokernels in a category in which the canonical comparison from coimage to image of every morphism is an isomorphism. This is the standard image-coimage form of the definition, equivalently expressed by normality of every monomorphism and epimorphism. Additivity means abelian-group hom-sets with bilinear composition, a zero object and finite biproducts. A sequence is exact at an object when the image of the incoming morphism is the kernel in a category of the outgoing one.
For , construct and . The universal properties give : first kills its kernel in a category and factors through ; then the resulting map is killed by because is epic, so it factors through . The comparison is invertible by the abelian axiom. Cokernels in a category are epic and kernels in a category monic, directly by uniqueness in their universal properties, so is epic and monic. Thus .
In a short exact sequence , we have and , up to the canonical isomorphisms. If retracts , the map kills and factors as for some . Composing with gives , so epicity gives . Conversely if , then is killed by and factors as . Composing with gives , so monicity gives . Consequently
In that case .
For the derived-functor requests, use additive right exact functors, as customary in abelian homological algebra. An abelian category with enough projectives permits an augmented projective resolution , obtained by repeatedly taking an epimorphism from a projective onto the previous kernel in a category. Apply and define
Projective lifts construct maps of resolutions; the comparison and chain-homotopy results make the construction independent of choices and functorial. For a short exact sequence, the horseshoe construction produces a degreewise split short exact sequence of resolutions, hence of their images under additive . Its homology objects give the long exact sequence
This supplies the requested sketch; detailed comparison and functoriality proofs are not needed here.
A projective object has a resolution concentrated in degree zero, so for every such . Conversely choose with projective, and take with target . Precomposition makes this covariant to the opposite category. The usual left exactness of contravariant Hom, which follows directly from the cokernel in a category universal property, says exactly that this is right exact in that opposite target. If , the long exact sequence and make monic in . Equivalently,
is epic, hence surjective, in abelian groups. The identity of has a preimage, giving a retraction of . The sequence splits, and is a direct summand of , hence projective: a lifting problem for extends along the projection , is solved for , and restricts along the summand inclusion. Therefore
This is projectivity detected by all first left derived functors. The following parts prove the three requested equivalent formulations of a hereditary abelian category with enough projectives.
A balanced category is one in which every morphism that is both monic and epic is an isomorphism. If a faithful functor sends to an isomorphism, then is monic: equality becomes , cancellation gives , and faithfulness gives . The same argument on the other side makes epic. Balance therefore makes an isomorphism. Thus a faithful functor out of a balanced category reflects isomorphisms.
Under the adjunction, the transpose of is . Hence if is faithful, forces and then , making every monic. Conversely, if the unit is pointwise monic and , naturality gives , whence . Therefore
We also use the standard adjunction fact with its justification: is full and faithful exactly when is invertible. Indeed the composite hom-set map is postcomposition by . If is full and faithful these maps are bijective; taking produces a right inverse, and taking gives injectivity and therefore a left inverse. Conversely an invertible unit makes these hom-set maps bijective.
For the final example, view the two-element ordered set as a category , and let have one object and only its identity. The unique is left adjoint to the functor selecting , since every is a singleton. Every arrow in an ordered-set category is monic, so the unit arrows and the identity counit are monic. But is not full: is empty whereas is a singleton. The example does not contradict the upcoming equivalence because is not balanced; its arrow is both monic and epic but not invertible.
The comma category has objects with and a set map. A morphism is an arrow such that . Composition and identities are those of . For , this is the category of elements of : objects are with and arrows satisfy .
Associate to the covariant representable functor . An arrow of gives, by precomposition, . Thus this is a diagram . There is a compatible natural map sending to .
Colimits in this functor category are pointwise. At an object , the induced map from the colimit sends a class represented by to . It is surjective because is represented by . It is injective because every representative with value is identified with that same canonical representative: the arrow in becomes an arrow of the indexing diagram sending to . These bijections are natural in , proving
Smallness of and set-valuedness of ensure that is small, so the displayed colimit is defined. This proves the introductory density request before the three equivalent conditions.
The Higman embedding theorem says that a finitely generated group embeds in a finitely presented group if and only if it has a recursive presentation of a group, that is, a presentation on finitely many generators with a recursively enumerable set of relators. We use its embedding direction as an assumed theorem. The reverse direction follows by expressing subgroup generators as words in the larger group and enumerating finite products of conjugates of its relators and their inverses; comparison after free reduction enumerates all null words in the subgroup. This is the enumerable identities of finitely generated subgroups argument. The theorem does not assume that the recursively presented group's word problem for a group is decidable.
Use the Riemannian curvature two-form convention
and define its four-covariant Riemann curvature tensor by . This makes positive on an orthonormal two-plane of the unit sphere. The full algebraic symmetries are
Together with multilinearity, these are antisymmetry in each pair, interchange of pairs, and the first Bianchi identity.
Define the Ricci tensor by the basis-independent contraction
for any orthonormal basis . The trace is invariant under change of basis, and contraction of the smooth curvature tensor gives a smooth covariant two-tensor. Pair interchange gives , so . Thus the Ricci tensor is a symmetric covariant 2-tensor.
The sectional curvature of the two-plane is
Both numerator and denominator multiply by the square of the determinant under a change of basis of , so this is a plane invariant. The directional Ricci curvature of is . For an orthonormal basis beginning with , it equals the sum of the sectional curvatures of the planes containing that basis vector.
In dimension three, suppose this directional value is at the point under consideration. For any orthonormal triple , put . Then
so all three are . Every two-plane can be the span of the first two members of such a triple. Consequently
This is a pointwise conclusion, as required; it uses sectional curvatures from Ricci curvature in dimension three and asserts no spatial constancy.
For the product, the canonical identification defines the product Riemannian metric
It is smooth in product charts and positive definite, since a nonzero vector has a nonzero component in at least one factor. Those components are orthogonal. The coordinate connection computation in the subparts below gives
Taking the trace in orthonormal bases of the two factors therefore gives .
For the final example choose the two round unit spheres. Each has sectional curvature one and Ricci tensor equal to its metric. Hence the product has , so every directional Ricci curvature is one. A two-plane tangent to one factor has sectional curvature one, whereas a mixed two-plane has sectional curvature zero by (iii). This gives constant Ricci curvature without constant sectional curvature:
Both kinds of plane occur at every point, so the sectional curvatures fail to be constant even at a single point.
For closed connected oriented -manifolds, the degree of a map between oriented manifolds is the integer defined by in . If has finite fiber , choose disjoint small neighbourhoods containing no other points of that fiber. The map of local relative homology groups
sends the local orientation generator at to times the one at . This integer is its local degree of a continuous map, independent of the small neighbourhood by excision. Excision also identifies with the direct sum of the local groups, and the global fundamental class restricts to their orientation generators. Naturality of the maps to relative homology therefore proves the degree as a sum of local degrees:
The empty fiber gives degree zero. For smooth maps at a regular value, a local degree is the sign of the derivative determinant, but general continuous maps can have larger local multiplicities.

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