Question
In: Statistics and Probability
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 annual claims paid by the
insurer, net of reinsurance.
Solutions
orchestra answered 1 year agoRelated Solutions
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,…
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Calculate the Probability *Binomial Distribution* An insurance company sells life insurance policies to 5 people with...
Calculate the Probability *Binomial Distribution*
An insurance company sells life insurance policies to 5 people
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If the Insurance company was estimating at 66% the probability of a
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What is the probability that 30 years after buying the policy:
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d....
An insurance company issues 1600 vision care insurance policies. The number of claims filed by a...
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An insurance company issues 1250 vision care insurance policies. The number of claims filed by a...
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Consider the following Binomial Distribution scenario: The number of accounts that are in compliance or not...
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Suppose the number of cars in a household has a binomial distribution with parameters n =...
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(c) 16 or more cars
(d) fewer than 13 cars
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