Expected Claim Frequency is the average number of claims expected to occur during a specified period of time.

Binomial Distribution is not commonly used in Risk Theory because it is typically used to model the number of successes in a sequence of independent experiments, rather than the occurrence of claims.

The variance of a random variable is calculated as the expected value of the squared deviation from the mean.

Loss Ratio is the ratio of the expected total claim cost to the total earned premium.

Claim Frequency is the probability of a claim occurring.

Regression Analysis is not commonly used for estimating expected claim frequency because it is typically used to model the relationship between two or more variables, rather than the occurrence of claims.

Underwriting Profit is the difference between the total earned premium and the expected total claim cost.

Expert Opinion is not commonly used for estimating expected claim severity because it is subjective and may not be reliable.

Total Claim Cost Distribution is the probability distribution of the total claim cost.

Risk Mitigation is not a common method for managing risk because it involves reducing the likelihood or impact of a risk, rather than transferring or avoiding it.

Risk Transfer is the process of transferring risk from one party to another.

Property Insurance is not a common type of insurance policy because it is typically used to cover damage to property, rather than liability or health.

Policy Limit is the maximum amount that an insurer will pay for a claim.

Facultative Reinsurance is not a common type of reinsurance contract because it is typically used to cover a specific risk, rather than a portfolio of risks.

Reinsurance is the process of sharing risk among multiple insurers.