Question
In: Statistics and Probability
To determine the insurance premium of a car, an insurancecompany considers the following determinants: the...
To determine the insurance premium of a car, an insurance company considers the following determinants: the model of the car , the age of the car, and the mileage of the car. Which of the following is the dependent variable? Please explain why you chose this answer to better understand why you chose it. I believe it is A due to using the cars mileage and always determines the premium of the bill. But then i believe it is C.insurance premium due to the age, model, and mileage of the car that depend on it.
A.) Mileage
B.) Age
c.) Insurance premium
D.) Model
Solutions
Expert Solution
To determine the insurance premium of a car,
So dependent variable is insurance premium of a car
indepeendent variables are
model of the car , the age of the car, and the mileage of the car
our model will be
insurance premium =a+b*model of the car+b1* age of the car+b2* mileage of the car
we need to determine slopes and y intercept from regression
equation.
Coming to answer:
Which of the following is the dependent variable
c.) Insurance premium
orchestra answered 2 years agoRelated Solutions
Actuaries at an insurance company must determine a premium for the type of insurance. A random...
Actuaries at an insurance company must determine a premium for
the type of insurance. A random sample of 40 potential purchasers
of this type of insurance were foundto have suffered the following
values of losses (in dollars) during the past year. These losses
would have been covered by the insurance if it were not
available.
100
32
0
0
470
50
0
14589
212
93
0
0
1127
421
0
87
135
420
0
250
12
0
309
0
177...
Help with a c Program to compute the car insurance premium for a person based on...
Help with a c Program to compute the car insurance premium for
a person based on their age and the number of tickets they have
received. The following table explains how to perform the ticket
computation:
If Person's Age Is
Then Insurance Cost Is
Less than 21
$1500 + $250 x number of tickets
From 21 through 24
$1200 + $250 x number of tickets
25 or older
$1000 + $200 x number of tickets
Print the person’s age, number...
A researcher for a car insurance company wishes to estimate themean annual premium that men...
A researcher for a car insurance company wishes to estimate the
mean annual premium that men aged 20-24 years pay for their car
insurance. A random sample of 50 men aged 20-24 years shows a mean
of $711. Assume that the distribution of annual premiums has a
standard deviation of $185.a) Find a 94% confidence interval for the mean annual premium
for all men aged 20-24 years.b) What is the error of the estimate?c) Find the 99% confidence interval for...
Write a program to determine the cost of an automobile insurance premium, based on the driver's...
Write a program to determine the cost of an automobile insurance
premium, based on the driver's age and the number of accidents that
the driver has had.
The basic insurance charge is $500.There is a surcharge of
$100. if the driver is under 25 and an additional surcharge for
accidents:
No. of accidents
►
Accident Surcharge
1
►
25
2
►
25
3
►
75
4
►
75
5
►
100
6 or +
►
No assurance
In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in a...
In calculating insurance premiums, the actuarially fair
insurance premium is the premium that results in a zero NPV for
both the insured and the insurer. As such, the present value of the
expected loss is the actuarially fair insurance premium. Suppose
your company wants to insure a building worth $245 million. The
probability of loss is 1.25 percent in one year, and the relevant
discount rate is 4 percent.
a. What is the actuarially fair insurance premium? (Do not round...
In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in a...
In calculating insurance premiums, the actuarially fair
insurance premium is the premium that results in a zero NPV for
both the insured and the insurer. As such, the present value of the
expected loss is the actuarially fair insurance premium. Suppose
your company wants to insure a building worth $460 million. The
probability of loss is 1.30 percent in one year, and the relevant
discount rate is 2.1 percent.
a.
What is the actuarially fair insurance premium? (Do not
round...
In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in a...
In calculating insurance premiums, the actuarially fair
insurance premium is the premium that results in a zero NPV for
both the insured and the insurer. As such, the present value of the
expected loss is the actuarially fair insurance premium. Suppose
your company wants to insure a building worth $295 million. The
probability of loss is 1.28 percent in one year, and the relevant
discount rate is 3.2 percent.
a.
What is the actuarially fair insurance premium? (Enter
your...
In calculating insurance premiums, the actuarially fair insurance premium is the premium that results in a...
In calculating insurance premiums, the actuarially fair
insurance premium is the premium that results in a zero NPV for
both the insured and the insurer. As such, the present value of the
expected loss is the actuarially fair insurance premium. Suppose
your company wants to insure a building worth $280 million. The
probability of loss is 1.44 percent in one year, and the relevant
discount rate is 3.6 percent.
a.
What is the actuarially fair insurance premium? (Enter
your...
The data below represents yearly car insurance premium in the US for 10 randomly selected drivers....
The data below represents yearly car insurance premium in the US
for 10 randomly selected drivers. Assuming the data is normally
distributed, test the claim that the average yearly car insurance
premium for a person in the US is $1,916 using a level of
significance of 1%.
1905,
1940,
1939,
1952,
1931,
1937,
1920,
1913,
1928,
1934
Enter the Null Hypothesis for this test: H0:
Enter the Alternative Hypothesis for this test: H1:
What is the p-value for this hypothesis...
“In attempting to determine the population mean annual automobile insurance premium, you draw a sample of...
“In attempting to determine the population mean annual
automobile insurance premium, you draw a sample of 25 automobile
insurance policies. This sample has a sample mean annual premium of
$1440 and a sample standard deviation of s=$165.
a. Construct a 99% confidence interval for the population mean
annual automobile insurance
premium.
b. Assuming everything else is fixed, what happens to the margin
of error as the sample size increases.
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