Question
In: Statistics and Probability
An insurance company has the following types of insureds: Type A: high risk insureds with a...
An insurance company has the following types of insureds:
- Type A: high risk insureds with a mean loss of 3,000 and a standard deviation of 10.
- Type B: low risk insureds with a mean loss of 1,000 and a standard deviation of 5.
You are given that 40% of the insureds are high risk.
Determine the variance of the amount of loss that the insureds incur.
a) 25
b) 36
c) 55
d) 360,655
e) 960,055
Solutions
orchestra answered 3 years agoRelated Solutions
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Car Type 2: Mean=$720 and Standard Deviation=$170
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(Normal) distribution, with the following parameters:
Car Type 1: Mean=$520 and Standard Deviation=$110
Car Type 2: Mean=$720 and Standard Deviation=$170
Car Type 3: Mean=$470 and Standard Deviation=$80
Use the Random number generator and simulate 1000-long columns,
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The annual cost for each type of cars can be modeled using Gaussian
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each of the three cases. Example: for the Car type 1, use Number of
variables=1, Number of random numbers=1000, Distribution=Normal,
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Your insurance company has converged for three types of cars. The annual cost for each type...
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The annual cost for each type of cars can be modeled using Gaussian
(Normal) distribution, with the following parameters: (Discussions
allowed!)
Car type 1 Mean=$520 and Standard Deviation=$110
Car type 2 Mean=$720 and Standard Deviation=$170
Car type 3 Mean=$470 and Standard Deviation=$80
Use Random number generator and simulate 1000 long columns, for
each of the three cases. Example: for the Car type 1, use Number of
variables=1, Number of random...
Your insurance company has converged for three types of cars. The annual cost for each type...
Your insurance company has converged for three types of cars.
The annual cost for each type of cars can be modeled using Gaussian
(Normal) distribution, with the following parameters: (Discussions
allowed!)
Car type 1 Mean=$520 and Standard Deviation=$110
Car type 2 Mean=$720 and Standard Deviation=$170
Car type 3 Mean=$470 and Standard Deviation=$80
Use Random number generator and simulate 1000 long columns, for
each of the three cases. Example: for the Car type 1, use Number of
variables=1, Number of random...
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