An insurance company issues 1600 vision care insurance policies. The number of claims filed by a...

An insurance company issues 1600 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is a Poisson random variable with mean 5. Assume the numbers of claims filed by distinct policyholders are independent of one another. Find the approximate probability that the number of total claims during a one-year period is between 7928 and 8197.

Expert Solution

orchestra answered 2 years ago

An insurance company issues 1250 vision care insurance policies. The number of claims filed by a...

An insurance company issues 1250 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is a Poisson random variable with mean 2. Assume the numbers of claims filed by a distinct policyholders are independent of one another. What is the approximate probability that there is a total of between 2450 and 2600 claims during a one year period?

The number of successful claims on life insurance policies for an insurance company has been determined...

The number of successful claims on life insurance policies for an insurance company has been determined to follow a Poisson process with an average rate of 5 claims per week. If the amount of money paid on each policy is uniformly distributed between $2,000 and $10,000, what is the mean of the total amount of money that the company pays out in a four-week period?

1. A insurance office keeps track of the number of car insurance claims filed each day....

1. A insurance office keeps track of the number of car insurance claims filed each day. Based on the data collected, it determines that the following probability distribution applies: Number of Claims Probability 0 .05 1 .15 2 .25 3 .45 4 .10 a. What is the expected number of new claims filed each day? b. If a claim pays out on average $5000, what is the average cost per day? c. If the ofice is open 250 days a...

1. The number of claims in a month for a portfolio of insurance policies is thought...

1. The number of claims in a month for a portfolio of insurance policies is thought to follow the Negative-binomial distribution with pdf ?(?) =( Γ(20+?) / Γ(? +1)Γ(20) ) . ?^20 . (1−?)^?, ? = 0,1,2,… A sample of 4 months had claim numbers of 15, 25, 20 and 21. a) There is no prior information for p. Using an uninformative prior to derive the posterior distribution for p. [12 marks] b) Show that the mode of the Beta...

Beek’s house was destroyed by fire and claims were filed with the insurance company.

Beek’s house was destroyed by fire and claims were filed with the insurance company. The insurance company (insurer) hired James to investigate the fire as it was suspicious about the cause. Subsequently, the insurer denied the claims based on James’s report. Thompson sued the insurer and Cannon. Beek claimed to be a third party beneficiary of the James-insurer contract. Is Beek correct? If so what type of beneficiary is he and why?

An insurance company has determined that each week an average of 9 claims are filed in...

An insurance company has determined that each week an average of 9 claims are filed in its Atlanta branch. What is the probability that during the next week at least 18 claims will be filed? How to solve this problem without Excel? Thanks

Consider a portfolio of insurance policies, on which the number of claims has a binomial distribution...

Consider a portfolio of insurance policies, on which the number of claims has a binomial distribution with parameters n = 1,000 and p = 0.01. The claim size distribution is assumed to be exponential with mean $100. Claim amounts are assumed to be independent random variables, and the claim amounts are independent of the number of claims. The insurer takes out an individual excess of loss reinsurance contract with a retention level of $200. Calculate the mean of the aggregate...

An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on...

An automotive insurance company wants to predict which filed stolen vehicle claims are fraudulent, based on the mean number of claims submitted per year by the policy holder and whether the policy is a new policy, that is, is one year old or less (coded as 1 = yes, 0 = no). Data from a random sample of 98 automotive insurance claims, organized and stored in InsuranceFraud , show that 49 are fraudulent (coded as 1) and 49 are not...

Claims arrive to an insurance company according to a Poisson Process. The average number of claims...

Claims arrive to an insurance company according to a Poisson Process. The average number of claims reported every day is 2.5. It has been reported that 15% of these claims are fake. What is the probability that in a week of five business day 10 claims arrive and one of these is fake? ONLY ANSWERRRRR

Imagine that an insurance company claims 7 policies on average per month. Calculate the probability that...

Imagine that an insurance company claims 7 policies on average per month. Calculate the probability that no policy will be claimed in a week

Question