3. An insurer ﬁnds that the time until occurrence of a claim from its property insurance...

3. An insurer ﬁnds that the time until occurrence of a claim from its property insurance division is exponentially distributed with a mean of 1 unit of time, and the time until occurrence of a claim from its life insurance division is exponentially distributed with a mean of 2 unites of time. Claims occur independently in the two divisions. Find the expected time until the ﬁrst claim occurrence, property of life.

Solutions

Expert Solution

for property insurance division mean λ1=1 unit

and for life insurance division λ2=2 unit

expected time until the ﬁrst claim occurrence =1/(λ1+λ2) =1/(1/1+1/2) =2/3 unit

orchestra answered 1 year ago

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