Appendix DThe Recursive Formula
The recursive formula is (where the frequency distribution is a member of the 
class),
where 
, 
, 
, and 
. Note that the severity distribution (X) must place probability on nonnegative integers. The formula must be initialized with the value of 
. These values are given in Table D.1. It should be noted that, if N is a member of the 
class, 
, and so the first term will vanish. If N is a member of the compound class, the recursion must be run twice. The first pass uses the secondary distribution for , , a, and b. The second pass uses the output from the first pass ...
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