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...
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...
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
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...
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...
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...
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