In this paper we study some bivariate counting distributions that are obtained by the trivariate reduction method. We work with Poisson compound distributions and we use their good properties in order to derive recursive algorithms for the bivariate distribution and bivariate aggregate claims distribution. A data set is also fitted.

The problem studied is that of controlling a finite Markov chain so as to maximize the long-run expected reward per unit time. The chain's transition probabilities depend upon an unknown parameter taking values in a subset [a, b] of Rn. A control policy is defined as the probability of selecting a control action for each state of the chain. Derived is a Taylor-like expansion formula for the expected reward in terms of policy variations. Based on that result, a recursive stochastic gradient algorithm is presented for the adaptation of the control policy at consecutive times. The gradient depends on the estimated transition parameter which is also recursively updated using the gradient of the likelihood function. Convergence with probability 1 is proved for the control and estimation algorithms.