An insurance policy pays for a random loss X subject to a deductible of 550. The...

Question

Question

math Statistics-And-Probability

Answer 1

Answer #1

here expected payment after deductible= E(X-550)= $\int_{550}^{\infty }$ (4/500)*(x-550)*(500/x)⁵ dx

=-(4/500)*(500⁵/3x³ -550*500⁵/4x⁴) |₅₅₀ =125.2191 ~ 125

Answer 2

Similar Homework Help Questions

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...
An insurance policy pays $1000 per day for up to 2 days of hospitalization and $500...

An insurance policy pays $1000 per day for up to 2 days of hospitalization and $500 per day for each day of hospitalization thereafter. The number of days of hospitalization, X, is a discrete random variable with probability function f(x)={ k(5−x) x=1,2,3,4 0 otherwise What is the expected payment for hospitalization under this policy?
An insurance policy covers losses X and Y which have joint density function 24y f(x,y) , y>0. (a)...

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. An insurance policy covers losses X and Y which have joint density function (a) Find the expec...

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) ,...

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 auto insurance policy has a deductible of 1 and a maximum claim payment of 5....

An auto insurance policy has a deductible of 1 and a maximum claim payment of 5. Auto loss amounts follow an exponential distribution with mean 2. Calculate the expected claim payment made for an auto loss.

A loss random variable has density function f ( x ) = 2- 2x for 0...

A loss random variable has density function f ( x ) = 2- 2x for 0 < x < 1. At what level should a policy limit be set so that the expected insurer payment is one-half of the overall expected loss?
An insurance policy has a deductible of 10. Losses follow a probability distribution with density fx...

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
In automobile collision insurance and health insurance, the policy usually has a provision calling for a deductible according to which the portion of any insured loss up to some fixed limit is pa...

In automobile collision insurance and health insurance, the policy usually has a provision calling for a deductible according to which the portion of any insured loss up to some fixed limit is payed for by the insured person; only the excess is paid by the insurance company. In addition, health insurance policies often provide for co-payments by the insured so that even after the deductible is met, the insured pays some fraction or fixed amount of the medical costs until...

Losses have a uniform distribution from 0 to 250. An insurance pays 100% of the amount...

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.