An insurance company issues policies covering damage to automobiles. The amount of damage is modeled by...
An insurance company issues policies covering damage to automobiles. The amount of damage is modeled by a uniform distribution on [0,b]. The policy payout is subject to a deductible of 0.1b.
A policyholder experiences automobile damage. Calculate the ratio of the standard deviation of the policy payout to the standard deviation of the amount of the damage.
The answer is 0.9734
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An insurance company issues policies covering damage to
automobiles. The amount of damage is modeled by...
The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance...
The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance follows. Payment ($) Probability 0 0.82 500 0.05 1000 0.04 3000 0.04 5000 0.03 8000 0.01 10000 0.01 a. Use the expected collision payment to determine the collision insurance premium that would enable the company to break even. Answer: $ b. The insurance company charges an annual rate of $595 for the collision coverage. What is the expected value of the collision policy for...
An insurance company issues 1250 vision care insurance policies. The number of claims filed by a...
An insurance company issues 1250 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is a random variable with u=2 and = 72. Assume the numbers of claims filed by different policyholders are mutually independent. Calculate the approximate probability that there is a total of between 2450 and 2600 claims during a one-year period?
I really need a help with it please. Thank you. Neighborhood Insurance sells fire insurance policies to local ho...
I really need a help with it please. Thank you.
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $170, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $160,000 a. Make a table of the two possible payouts on each policy with the probability of each Answer is complete but not entirely correct. Outcome Outcome Fire! No Fire 170 Payout $...
2. (2.5 Points) An insurance company sells an autoinsurance policy that covers losses incurred by a...
2. (2.5 Points) An insurance company sells an autoinsurance policy that covers losses incurred by a policyholder, subject to a deductible of $100. Losses (in $) incurred have cumulative distribution function (cdf) F(t) where F(t) 0, if t <0; and F(t) 1 - exp(-t/300), if t>O (a) What is the 95th percentile of losses incurred? (b) What is the 95th percentile of the actual losses that exceed the deductible?
please hightlight the answers Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is...
please hightlight the answers
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $200, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $190,000 a. Make a table of the two possible payouts on each policy with the probability of each. Outcome A: No Fire $ o Outcome B: Fire! 190,000 Payout b. Suppose you own the entire firm, and the company...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $310, the probability of...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $310, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $300,000. a. Make a table of the two possible payouts on each policy with the probability of each. Outcome A: No Fire Outcome B: Fire! Payout b. Suppose you own the entire firm, and the company issues only one polley. What are the...
one with u = 5. An insurance company issues 1250 vision policies. The number of claims...
one with u = 5. An insurance company issues 1250 vision policies. The number of claims filed by a policyholder under a vision policy during year is a random Variable 2 and 6=52. Assume humber of claims filed by different policy holders are mutually independent, Calculate the approximate probability that there is a total of between 2450 and 2600 claims during a one year periode 6. the profit for a new product is given by..Z - 3X-Y-5 Jf Xand Y...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $300, the probability of...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $300, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $290,000. a. Make a table of the two possible payouts on each policy with the probability of each. b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance and standard deviation of your...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $270, the probability of...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $270, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $260,000. a. Make a table of the two possible payouts on each policy with the probability of each. b. Suppose you own the entire firm, and the company issues only one policy. What are the expected value, variance and standard deviation of your...
This is the Full Question. There are not anymore details. Neighborhood Insurance sells fire insurance policie...
This is the Full Question. There are not anymore details.
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $360, the probability of a fire is 01%, and in the event of a fire, the insured damages (the payout on the policy) will be $350,000 a. Make a table of the two possible peyouts on each policy with the probability of each, Outcome A: No Fire Outcome B: Fire! Payout b. Suppose you own the entire firm,...
An insurance company issues 1250 vision care insurance policies. The number of claims filed by a policyholder under a vision care insurance policy during one year is a random variable with u=2 and = 72. Assume the numbers of claims filed by different policyholders are mutually independent. Calculate the approximate probability that there is a total of between 2450 and 2600 claims during a one-year period?
I really need a help with it please. Thank you.
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $170, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $160,000 a. Make a table of the two possible payouts on each policy with the probability of each Answer is complete but not entirely correct. Outcome Outcome Fire! No Fire 170 Payout $...
2. (2.5 Points) An insurance company sells an autoinsurance policy that covers losses incurred by a policyholder, subject to a deductible of $100. Losses (in $) incurred have cumulative distribution function (cdf) F(t) where F(t) 0, if t <0; and F(t) 1 - exp(-t/300), if t>O (a) What is the 95th percentile of losses incurred? (b) What is the 95th percentile of the actual losses that exceed the deductible?
please hightlight the answers
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $200, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $190,000 a. Make a table of the two possible payouts on each policy with the probability of each. Outcome A: No Fire $ o Outcome B: Fire! 190,000 Payout b. Suppose you own the entire firm, and the company...
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $310, the probability of a fire is 0.1%, and in the event of a fire, the insured damages (the payout on the policy) will be $300,000. a. Make a table of the two possible payouts on each policy with the probability of each. Outcome A: No Fire Outcome B: Fire! Payout b. Suppose you own the entire firm, and the company issues only one polley. What are the...
one with u = 5. An insurance company issues 1250 vision policies. The number of claims filed by a policyholder under a vision policy during year is a random Variable 2 and 6=52. Assume humber of claims filed by different policy holders are mutually independent, Calculate the approximate probability that there is a total of between 2450 and 2600 claims during a one year periode 6. the profit for a new product is given by..Z - 3X-Y-5 Jf Xand Y...
This is the Full Question. There are not anymore details.
Neighborhood Insurance sells fire insurance policies to local homeowners. The premium is $360, the probability of a fire is 01%, and in the event of a fire, the insured damages (the payout on the policy) will be $350,000 a. Make a table of the two possible peyouts on each policy with the probability of each, Outcome A: No Fire Outcome B: Fire! Payout b. Suppose you own the entire firm,...
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