Comparing insurance with expected value
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Comparing insurance with expected value
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The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance follows. Payment ( Probability .85 0 .04 500 .04 1000 .03 3000 .02 5000 .01 8000 .01 a. Use the expected collision payment to determine the collision insurance premium that would enable the company to break even b. The insurance company charges an annual rate of 520 for the collision coverage. What is the expec
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1) An insurance company sells a one-year automobile policy with a deductible of 2. The probability that the insured will incur a loss is 0.05. If there is a loss, the probability of a loss of amount N is (K)/(N) for N = 1, ..., 8 and K a constant. These are the only possible loss amounts and no more than one loss can occur. Determine the net premium for this policy.
1) An insurance company sells a one-year automobile policy with a …
2021年9月24日
numerade.com
SOLVED: An insurance policy reimburses dental expenses X, up to a maximum benefit of 250. The probability density function for X is:f(x) = 0.004x for x ≥ 0 0 Otherwise Where c is a constant. Find the value of c. b. Write down the function for the reimbursed amount (benefit) for this policy. Find the expected value of the reimbursed amount for this policy.
SOLVED: An insurance policy reimburses dental expenses X, up …
2023年9月24日
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