4. On an insurance coverage, loss size has the following distribution:(2000) ³F(x) = 1-* 2 2000.The number of claims has a negative binomial distribution with mean 0.3, variance0.6. Claim counts and loss sizes are independent.A deductible of 2000 is applied toeach claim.Calculate the variance of aggregate payments.

Given that, on an insurance coverage, loss size has the following distribution Fx=1-2000x3 , x≥2000…

Answered: 4. On an insurance coverage, loss size…

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.3: Special Probability Density Functions

Problem 7E

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Similar questions

Determine the cumulative distribution function for the uniform distribution.
5. Losses X follow a paralogistic distribution with 0 = 5000 and a = 3. An insurance coverage for X has a policy limit of 10,000. Calculate the standard deviation of payment per loss. Use spreadsheet functions as needed.
Suppose that the return for a particular investment is normally distributed with a population mean of 10.1% and a population standard deviation of 5.4%. A person must score in the upper 5% of the population on an IQ test to qualify for a particular occupation If IQ scores are normally distributed with a mean of 100 and a standard deviation of 15, what score must a person have to qualify for this occupation?
Claims have mean $500, standard deviation $400 and are lognormally distributed. The insurance company purchases excess of loss (XL) reinsurance with retention level $800. Find: (a) The proportion of claims that will involve the reinsurer. (b) The expected claim size paid by the insurer. (c) The expected claim size paid by the reinsurer, for claims that involve the reinsurer. (d) The variance of claims paid by the insurer.
Suppose the mean monthly return on a T-Bill is 0.5% with a standard deviation of 0.58%. Sup-pose we have another investment Y with a 1.5% mean monthly return and standard deviationof 6%. Which of the two investments o ers less risk in terms of investment.
The Variance Inflationary Factor (VIF) measures the O standard deviation of the slope. correlation of the X variables with the Y variable. contribution of each X variable with the Y variable after all other X variables are included in the model. O correlation of the X variables with each other.
Discuss the differences between an error and a residual.

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