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 2 years agoRelated Solutions
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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...
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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...
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