The loss L due to a boat accident is exponentially distributed. Boat insurance policy A covers...
The loss L due to a boat accident is exponentially distributed. Boat insurance policy A covers up to 1 unit for each loss. Boat insurance policy B covers up to 2 units for each loss.
The probability that a loss is fully covered under policy B is 1.9 times the probability that it is fully covered under policy A.
Calculate the variance of L.
the answer is 90.7
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The loss L due to a boat accident is exponentially distributed.
Boat insurance policy A covers...
The loss L due to a boat accident is exponentially distributed. Boat insurance policy A covers...
The loss L due to a boat accident is exponentially distributed. Boat insurance policy A covers up to 1 unit for each loss. Boat insurance policy B covers up to 2 units for each loss. The probability that a loss is fully covered under policy B is 1.9 times the probability that it is fully covered under policy A. Calculate the variance of L. The answer is 100[2e^−0.1d −e^−0.2d]
7. An insurance policy is written to cover a loss X where X has density function...
7. An insurance policy is written to cover a loss X where X has density function f(x)x3 0 elsewhere The time T (in hours) to process a claim of size x, where 0 < x <3, is uniformly distributed on the interval from x/2 to 3x. Calculate the probability that a randomly chosen claim on this policy is processed in four hours or more. In a small metropolitan area, annual losses due to storm, fire, and theft are assumed to...
For a certain health insurance policy, losses are uniformly distributed on the interval [0, 450]. The...
For a certain health insurance policy, losses are uniformly distributed on the interval [0, 450]. The policy has a deductible of d and the expected value of the unreimbursed portion of a loss is 56. Calculate a (A) 60 (B) 87 (C) 112 (D) 169 (E) 224 27. A study of automobile accidents produced the following data: Probability of Model Proportion of involvement car 2014 2013 2012 Other all vehicles in an accident 0.16 0.18 0.20 0.46 0.05 0.02 0.03...
1. (3 POINTS) An insurance policy pays a individual $500 per day for up to 3...
1. (3 POINTS) An insurance policy pays a individual $500 per day for up to 3 days of hospitalization and $100 per day for each day of hospitalization thereafter. The number of days of hospitalization is a random variable X with P(X=x) = (6-x)/15, if x = 1,2,3,4,5. Calculate the expected payment for hospitalization under this policy. 2. (4 POINTS) An insurance policy reimburses a loss up to a benefit limit 0f $10. There is no deductible. The policyholder’s...
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5. An insurance company's losses on a particular policy are normally distributed with a mean of $150 million and a standard deviation of $50 million. (Assume that the risks taken on by the insurance company are entirely non-systematic.) The one-year risk-free rate is 5% per annum with annual compounding. Estimate the cost of the following: (a) A contract that will pay, in one-year's time, 60% of the insurance company's costs. (b) A contract that pays $ 100 million in one-year's...
6) The loss, L, due to a grease fire at Danny's Diner follows an exp(.4) distribution. Determine ...
Don't do 6. 6 is here as a reference for 7 and 8. Thank you
6) The loss, L, due to a grease fire at Danny's Diner follows an exp(.4) distribution. Determine (1 < L< 4) a) .592 b).468 )427 d).384 e).340 e) .34 0 7) In (6), determine the probability that the insurance payout exceeds 3, given that the loss exceeds the policy deductible 1 a).225 b) .256 c).277 d).293 e) .301 8) In (6), determine E(payout). note: the...
3. A steel manufacturing company suspended operations due to a covered loss. It has the Monthly...
3. A steel manufacturing company suspended operations due to a covered loss. It has the Monthly Limit of Indemnity option on its business income coverage. The company is shut down for four months. The highest month of net profit and continuing expenses for the company is $75,000. The company has selected a fraction of 1/4 with an indemnity limit of $250,000. Under the Monthly Limit of Indemnity option, how much of a loss will their insurer pay for each month...
An insurance company has issued 100 policies. The number of claims filed under each policy follows a Poisson distribution with a mean 2. Assuming that the claims filed by each policyholder are in...
An insurance company has issued 100 policies. The number of claims filed under each policy follows a Poisson distribution with a mean 2. Assuming that the claims filed by each policyholder are independent of each other, what is the approximate probability that more than 220 claims will be filed by the group of policyholders? B) 0.159 A) 0.079 C) 0.444 D) 0.556 E) 0.921 Question 2-20 An actuary is studying claim patterns in an insurer's book of business. He compiles...
1. How Much of Fire Loss Will Be Covered? Toula and Ian Miller of Gainesville, Florida,...
1. How Much of Fire Loss Will Be Covered? Toula and Ian Miller of Gainesville, Florida, recently suffered a fire at their home. The fire, which began in a crawl space at the back of the house, caused $50,000 of dam- age to the dwelling itself. Their ued at $20,000, was totally destroyed but did not contain a car at the time of the fire. Replacement of the Millers' personal property damaged in the home and garage amounted to $23,000....
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7. An insurance policy is written to cover a loss X where X has density function f(x)x3 0 elsewhere The time T (in hours) to process a claim of size x, where 0 < x <3, is uniformly distributed on the interval from x/2 to 3x. Calculate the probability that a randomly chosen claim on this policy is processed in four hours or more. In a small metropolitan area, annual losses due to storm, fire, and theft are assumed to...
For a certain health insurance policy, losses are uniformly distributed on the interval [0, 450]. The policy has a deductible of d and the expected value of the unreimbursed portion of a loss is 56. Calculate a (A) 60 (B) 87 (C) 112 (D) 169 (E) 224 27. A study of automobile accidents produced the following data: Probability of Model Proportion of involvement car 2014 2013 2012 Other all vehicles in an accident 0.16 0.18 0.20 0.46 0.05 0.02 0.03...
5. An insurance company's losses on a particular policy are normally distributed with a mean of $150 million and a standard deviation of $50 million. (Assume that the risks taken on by the insurance company are entirely non-systematic.) The one-year risk-free rate is 5% per annum with annual compounding. Estimate the cost of the following: (a) A contract that will pay, in one-year's time, 60% of the insurance company's costs. (b) A contract that pays $ 100 million in one-year's...
Don't do 6. 6 is here as a reference for 7 and 8. Thank you
6) The loss, L, due to a grease fire at Danny's Diner follows an exp(.4) distribution. Determine (1 < L< 4) a) .592 b).468 )427 d).384 e).340 e) .34 0 7) In (6), determine the probability that the insurance payout exceeds 3, given that the loss exceeds the policy deductible 1 a).225 b) .256 c).277 d).293 e) .301 8) In (6), determine E(payout). note: the...
3. A steel manufacturing company suspended operations due to a covered loss. It has the Monthly Limit of Indemnity option on its business income coverage. The company is shut down for four months. The highest month of net profit and continuing expenses for the company is $75,000. The company has selected a fraction of 1/4 with an indemnity limit of $250,000. Under the Monthly Limit of Indemnity option, how much of a loss will their insurer pay for each month...
An insurance company has issued 100 policies. The number of claims filed under each policy follows a Poisson distribution with a mean 2. Assuming that the claims filed by each policyholder are independent of each other, what is the approximate probability that more than 220 claims will be filed by the group of policyholders? B) 0.159 A) 0.079 C) 0.444 D) 0.556 E) 0.921 Question 2-20 An actuary is studying claim patterns in an insurer's book of business. He compiles...
1. How Much of Fire Loss Will Be Covered? Toula and Ian Miller of Gainesville, Florida, recently suffered a fire at their home. The fire, which began in a crawl space at the back of the house, caused $50,000 of dam- age to the dwelling itself. Their ued at $20,000, was totally destroyed but did not contain a car at the time of the fire. Replacement of the Millers' personal property damaged in the home and garage amounted to $23,000....
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