Losses this year have a distribution such that E(X ) = 32 and E(X ∧d ) = −3 + 1.1 d − 0.015 d ^{2}, for d = 5, 6, 7, …, 36. Next year, losses will be uniformly higher by 10%. An insurance policy reimburses 100% of losses subject to a deductible of 11. Determine the ratio of next year's reimbursements to this year's reimbursements.
Losses this year have a distribution such that E(X ) = 32 and E(X ∧d )...
1. A manufacturer’s annual losses follow a distribution with density function f(x) = 2.5(0.6)2.5/ x 3.5 , x > 0.6 0, otherwise. The manufacturer purchases an insurance policy to cover its annual losses with an annual deductible of 2. Calculate the mean of the manufacturer’s annual losses paid by the insurance policy. (A) 0 (B) 0.05 (C) 0.07 (D) 0.12 (E) 0.16 1. A manufacturer's annual losses follow a distribution with density function 2.5(0.6)2.5 f(x)-350.6 0, otherwise The manufacturer purchases...
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)...
parts a, b and c please 3. An insurance policy covers losses X and Y which have joint density function (a) Find the expected value of X. (b) Find the probability of a payout if the policy pays X + 2Y subject to a deductible of 1 on X and 1 on 2Y (c) Find the probability of a payout if the policy pays X +2Y subject to a deductible of 2 on the total payment X +2Y. 3. An...
An insurance policy covers losses X and Y which have joint density function 24y f(x,y) , y>0. (a) Find the expected value of X (b) Find the probability of a payout if the policy pays X + 2Y subject to a deductible of 1 on X and 1 on 2Y. (c) Find the probability of a payout if the policy pays X +2Y subject to a deductible of 2 on the total payment X + 2Y An insurance policy covers...
3. (4 points) A manufacturer's annual losses follow a distribution with density function: 2.5(0.6)2.5 f(x)235x 0 elsewhere To cover its losses, the manufacturer purchases an insurance policy with an annual deductible of 3. Let Y be the insu payment. a) What is the difference between the median and the 99th percentile of Y? What is the mean of the manufacturer's annual losses not paid by the insurance policy? 3. (4 points) A manufacturer's annual losses follow a distribution with density...
An insurance policy covers losses X and Y which have joint density function 24y f(x,y) , y>0. (a) Find the expected value of X (b) Find the probability of a payout if the policy pays X + 2Y subject to a deductible of 1 on X and 1 on 2Y. (c) Find the probability of a payout if the policy pays X +2Y subject to a deductible of 2 on the total payment X + 2Y
Losses have a uniform distribution from 0 to 250. An insurance pays 100% of the amount of a loss in excess of an ordinary deductible of 23. The maximum payment is 210 per loss. Determine the expected payment, given that a payment has been made.
An insurance policy has a deductible of 10. Losses follow a probability distribution with density fx (x) = xe* for 3 > 0 and fx (xv) = 0 otherwise. Find the expected payment Possible Answers [A]e-10 [B]2e-10 (0/106-10 (E 100e-10
8. Losses in a certain business follow an exponential distribution with mean 90. Currently polcies of 15%. Using educes the have no modifications. Next year, the company is expecting uniform inflation only an ordinary deductible, define a policy using the following modifications that r expected value of the per-loss random variable to the pre-inflation level. 8. Losses in a certain business follow an exponential distribution with mean 90. Currently polcies of 15%. Using educes the have no modifications. Next year,...
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...