Let X be the damage incurred (in $) in a certain type of accident during a...
Let X be the damage incurred (in $) in a certain type
of accident during a given year. Possible X values are 0,
1000, 5000, and 10000, with probabilities 0.83, 0.08, 0.07, and
0.02, respectively. A particular company offers a $500 deductible
policy. If the company wishes its expected profit to be $100, what
premium amount should it charge?
$
Homework Answers
Add Answer to:
Let X be the damage incurred (in $) in a certain type
of accident during a...
Let X be the damage incurred (in $) in a certain type of accident during a...
Let X be the damage incurred (in $) in a certain type of accident during a given year. Possible X values are 0, 1000, 5000, and 10000 with probabilities .8 .1 .08 and .02 respectively. a particular company offers a $500 deductible policy. if the company wishes its expected profit to be $100 what preminum amount should it charge?
The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance...
The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance follows. Payment ($) 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...
Within a certain period of time, let n be the number of health claims (the amount...
Within a certain period of time, let n be the number of health claims (the amount the insurance company pays the insured) of an insurance company, and suppose that the sizes of the claims areXi,... , Xn i.i.d Negative Expo nential with parameter ?. Let P be the premium charged or each policy (the amount the insured pays up front and let Sn-Xi+...+Xn. Assume the total amount of the claims should not exceed the total premium for the rn policies...
5.1A certain market has both an express checkout line and a superexpress checkout line. Let...
5.1A certain market has both an express checkout line and a superexpress checkout line. Let X, denote the number of customers in line at the express checkout at a particular time of day, and let X2 denote the number of customers in line at the superexpress checkout at the same time. Suppose the joint pmf of X1 and X2 is as given in the accompanying table. $$ \begin{array}{cc|cccc} & & \multicolumn{3}{|c} {x_{2}} \\ & & 0 & 1 & 2 &...
Question 12 Suppose that a decision maker’s risk attitude toward monetary gains or losses x given...
Question 12 Suppose that a decision maker’s risk attitude toward monetary gains or losses x given by the utility function U(x) = (x+10,000)^0.5 If there is a 2.5% chance that the decision maker's car, valued at $5000, will be totaled during the next year, what is the most that she would be willing to pay each year for an insurance policy that completely covers the potential loss of her vehicle? Please round all answers (also intermediate results to 2 decimals)....
Let X be a normal random variable with mean 4 and variance 9. Use the normal...
Let X be a normal random variable with mean 4 and variance 9. Use the normal table to find the following probabilities, to an accuracy of 4 decimal places. Normal Table The entries in this table provide the numerical values of Φ(z)=P(Z≤z), where Z is a standard normal random variable, for z between 0 and 3.49.For example, to find Φ(1.71), we look at the row corresponding to 1.7 and the column corresponding to 0.01, so that Φ(1.71)=.9564. When z is...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Answer critical analysis questions. ISSUES AND APPLICATIONS Private or Public Auto Insurance: What is Best for...
Answer critical analysis questions.
ISSUES AND APPLICATIONS Private or Public Auto Insurance: What is Best for Canada? Concepts Applied: Capitalist, Command, and Mixed Systems; Productive Efficiency, Allocative Efficiency; and Equity t the cost of he codents a How does t In response to public outrage over styrocketing car insurance premiums, the consumers' Association of a completed a comprehensive report on auto insurance rates in Canada September 2003 in presenting the report the association noted that government-owned or public auto insurance...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2019. She...
Reba Dixon is a fifth-grade school teacher who earned a salary
of $38,000 in 2019. She is 45 years old and has been divorced for
four years. She receives $1,200 of alimony payments each month from
her former husband (divorced in 2016). Reba also rents out a small
apartment building. This year Reba received $50,000 of rental
payments from tenants and she incurred $19,500 of expenses
associated with the rental.
Reba and her daughter Heather (20 years old at the...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,400 in 2018. She...
Reba Dixon is a fifth-grade school teacher who earned a salary
of $38,400 in 2018. She is 45 years old and has been divorced for
four years. She receives $1,300 of alimony payments each month from
her former husband (divorced in 2016). Reba also rents out a small
apartment building. This year Reba received $50,200 of rental
payments from tenants and she incurred $19,578 of expenses
associated with the rental. Reba and her daughter Heather (20 years
old at the...
Within a certain period of time, let n be the number of health claims (the amount the insurance company pays the insured) of an insurance company, and suppose that the sizes of the claims areXi,... , Xn i.i.d Negative Expo nential with parameter ?. Let P be the premium charged or each policy (the amount the insured pays up front and let Sn-Xi+...+Xn. Assume the total amount of the claims should not exceed the total premium for the rn policies...
5.1A certain market has both an express checkout line and a superexpress checkout line. Let X, denote the number of customers in line at the express checkout at a particular time of day, and let X2 denote the number of customers in line at the superexpress checkout at the same time. Suppose the joint pmf of X1 and X2 is as given in the accompanying table. $$ \begin{array}{cc|cccc} & & \multicolumn{3}{|c} {x_{2}} \\ & & 0 & 1 & 2 &...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Answer critical analysis questions.
ISSUES AND APPLICATIONS Private or Public Auto Insurance: What is Best for Canada? Concepts Applied: Capitalist, Command, and Mixed Systems; Productive Efficiency, Allocative Efficiency; and Equity t the cost of he codents a How does t In response to public outrage over styrocketing car insurance premiums, the consumers' Association of a completed a comprehensive report on auto insurance rates in Canada September 2003 in presenting the report the association noted that government-owned or public auto insurance...
Reba Dixon is a fifth-grade school teacher who earned a salary
of $38,000 in 2019. She is 45 years old and has been divorced for
four years. She receives $1,200 of alimony payments each month from
her former husband (divorced in 2016). Reba also rents out a small
apartment building. This year Reba received $50,000 of rental
payments from tenants and she incurred $19,500 of expenses
associated with the rental.
Reba and her daughter Heather (20 years old at the...
Reba Dixon is a fifth-grade school teacher who earned a salary
of $38,400 in 2018. She is 45 years old and has been divorced for
four years. She receives $1,300 of alimony payments each month from
her former husband (divorced in 2016). Reba also rents out a small
apartment building. This year Reba received $50,200 of rental
payments from tenants and she incurred $19,578 of expenses
associated with the rental. Reba and her daughter Heather (20 years
old at the...
Most questions answered within 3 hours.
-
Ingraham Inc. currently has $880,000 in accounts receivable, and
its days sales outstanding (DSO) is 47...
asked 48 seconds from now -
Look at sample problem 19.6 in the 8th ed Silberberg book.
Enter your answers in scientific...
asked 18 minutes ago -
A long straight wire carries a current of 5.00 A at a distance r from the...
asked 20 minutes ago -
A 125
g baseball is thrown at a speed of 127ft/sec at a batter, the ball...
asked 25 minutes ago -
If you have an eta squared of .34 and used a
between-subjects design, what does that...
asked 33 minutes ago -
*Healthcare Adminstration*
Scutchfield and Keck's Principles of Public Health Practice
4th edition
What are the differences...
asked 37 minutes ago -
Find the complete optimal solution to this linear programming
problem. Max 5x + 3y s.t. 2x...
asked 1 hour ago -
The pH of an acetate buffer was determined to be 4.76. Then, a
few drops of...
asked 1 hour ago -
a sample of size 1500 is used to find a confidence
interval for the percentage of...
asked 1 hour ago -
Explain in detail the differences between qualitative and
quantitative forecasts. Include at least two examples of...
asked 1 hour ago -
Differentiate between response time and throughput.
Explain how the physical design of a database influences
performance...
asked 1 hour ago -
Write MATLAB code to plot the following
waveforms.
Rectangular pulses:
????(?)
????(? − ?)
????(?/?) ...
asked 1 hour ago