= Bühlmann–Straub model
{c}
{title2=$\operatorname{Var}(X_j\mid\Theta)=\sigma^2(\Theta)/m_j$}
= Bühlmann–Straub credibility model
{c}
{synonym}
Conditional on a common <latent variable> $\Theta$, annual averages $X_j$ are independent, have common <conditional expectation> $\mu(\Theta)$, and have <conditional variance> $\sigma^2(\Theta)/m_j$ for known positive exposures $m_j$. Its structural parameters are $m_0=\mathbb E\mu(\Theta)$, <expected process variance> $v=\mathbb E\sigma^2(\Theta)$ and <variance of hypothetical means> $a=\operatorname{Var}(\mu(\Theta))$. It generalizes the equal-exposure <Bühlmann model>.
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