Probability question involving generating functions and expectation

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SUMMARY

The discussion centers on a probability question involving generating functions and expectations, specifically addressing a problem from a homework assignment related to the expected premium calculation. The user struggles with proving the inequality and proposes that the expected premium can be expressed as £M(lambda)^(E[Y]-1). They express confusion over the relationship between (lambda)^(E[Y]-1) and the constant k, indicating a potential error in their approach. Additionally, a technical note is provided regarding a bug in the forum's LaTeX preview functionality.

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Homework Statement


Hi,

I'm stuck on the very last part of 5.b

https://www.maths.ox.ac.uk/system/files/attachments/PaperC2003.pdf


Homework Equations



The Attempt at a Solution



I can't prove the inequality, would it be right to say the expected premium would be
£M(lambda)^(E[Y]-1)

Then I get (lambda)^(E[Y]-1)>k.. thinking I must have done something wrong because can't see how to get this to the one stated.
 
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I can't get to that PDF. By the way, if you decide to use LaTex on this forum, after you preview your post, tell your browser to reload the page. There is a bug in the forum software that usually makes the initial previews look screwy.
 

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