For a liability coverage, you are given: Losses for each insured follow an exponential distribution with...
For a liability coverage, you are given:
Losses for each insured follow an exponential distribution with mean (alpha)
(alpha)varies by insured.
(alpha)follows a single-parameter Pareto distribution with parameter= 1, with= 1000.
Calculate the probability that a loss will be less than 500.
(a) 0.2131(b) 0.3131(c) 0.4131(d) 0.5131(e) 0.6131
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For a liability coverage, you are given:
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The circled answer is wrong please show the work to arrive at a correct answer please....
The circled answer is wrong please show the work to arrive at a
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3. X is the random variable for claim sizes. Given A, X follow a single-parameter Pareto distribution with parameters θ 1000 and A. The distribution of A over the entire population is an exponential distribution with mean 3 Calculate Pr(X> 1500)
5. You are given that X1 and X2 follow an exponential distribution with mean 10 and 20, respectively. Both Tommy and Tony want to create a new distribution using X1 and X2 to model the waiting time (in mins), X, at a doctor's office. (i) Based on Tommy's Judgement: 80% of the chance, the waiting time follows a distribution as X1 and 20% of the chance, it follows the same distribution as X. (ii) Tony would like to use a...
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The circled answer is wrong please show the work to arrive at a
correct answer please.
n insurance policy reimburses 100% for losses up to $100, less a deductible. In addition, the policy reimburses 50% of losses beyond $100. The deductible is $20 and losses follow an Exponential distribution with mean $80. Calculate the probability that the reimbursement for a loss is less than $100, given that (12) the reimbursement is greater than SO A) 0.202 B) 0.632 (C)0.736 D)...
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