If there are sufficient numbers of observations per sample, then
the law of large numbers and...
If there are sufficient numbers of observations per sample, then
the law of large numbers and central limit theorem will come into
effect which state that:
The business of selling insurance is based on probability and
the law of large numbers. Consumers buy insurance because we all
face risks that are unlikely but carry high cost. Think of a fire
destroying your home. So we form a group to share the risk: we all
pay a small amount, and the insurance policy pays a large amount to
those few of us whose homes burn down. The insurance company sells
many policies, so it can rely on...
The business of selling insurance is based on probability and
the law of large numbers. Consumers buy insurance because we all
face risks that are unlikely but carry high cost. Think of a fire
destroying your home. So we form a group to share the risk: we all
pay a small amount, and the insurance policy pays a large amount to
those few of us whose homes burn down. The insurance company sells
many policies, so it can rely on...
-The Law of Large Numbers is a statistical theory that you read
about in this chapter. In your own words, what does this law say
about the probability of an event? Perhaps you have also heard of
something called the Law of Averages (also called the Gambler's
Fallacy). Do an Internet search to find out additional information
about both of these laws.
-Are these the same laws? If not, how are they related and how
are they different?
-What general...
The Law of Large Numbers is a statistical theory that you read
about in this chapter. In your own words, what does this law say
about the probability of an event? Perhaps you have also heard of
something called the Law of Averages (also called the Gambler's
Fallacy). Do an Internet search to find out additional information
about both of these laws.
Are these the same laws? If not, how are they related and how
are they different?
What general...
Question No. 1:-
Explain the concept of large numbers of law in the insurance
sector, and then determining the six requirements of an insurable
risk.
Question No. 2:-
Delta Insurance is a property insurer that enter into a surplus
reinsurance treaty with Ever safe Re. Delta has a retention limit
of $200,000 on any single building, and up to nine lines of
insurance may be ceded to Ever safe. A building valued at $1.6m is
insured with Delta. Shorty after...
The Law of Large Numbers is a statistical theory that you read
about in this chapter. In your own words, what does this law say
about the probability of an event? Perhaps you have also heard of
something called the Law of Averages (also called the Gambler's
Fallacy). Do an Internet search to find out additional information
about both of these laws.
Are these the same laws? If not, how are they related and how
are they different?
What general...