TOPIC:Order statistic and Expected value.
Losses follow an exponential distribution with mean 1. Two independent losses are observed. Calculate the expected...
8. Losses in a certain business follow an exponential distribution with mean 90. Currently polcies of 15%. Using educes the have no modifications. Next year, the company is expecting uniform inflation only an ordinary deductible, define a policy using the following modifications that r expected value of the per-loss random variable to the pre-inflation level. 8. Losses in a certain business follow an exponential distribution with mean 90. Currently polcies of 15%. Using educes the have no modifications. Next year,...
For a liability coverage, you are given: Losses for each insured follow an exponential distribution with mean (alpha) (alpha)varies by insured. (alpha)follows a single-parameter Pareto distribution with parameter= 1, with= 1000. Calculate the probability that a loss will be less than 500. (a) 0.2131(b) 0.3131(c) 0.4131(d) 0.5131(e) 0.6131
2. The number of losses on an automobile comprehensive coverage has the following distribution: Number of losses Probability 0.3 0.4 0.2 0.1 2 Loss sizes follow a Pareto distribution with parameters a -5 and 0 1240 and are independent of loss counts and each other. Calculate the variance of aggregate losses. 2. The number of losses on an automobile comprehensive coverage has the following distribution: Number of losses Probability 0.3 0.4 0.2 0.1 2 Loss sizes follow a Pareto distribution...
Sketch the probability distribution for average losses in a pooling arrangement for: The expected loss for each participant is $1,500, and losses for the 100 participants are independent The expected loss for each participant is $1,500, and losses for the 100 participants are positively correlated
A light bulb (the lifetime is assumed to follow an exponential distribution) has a mean life of 400 hours. What is the probability of the bulb lasting 1) less than 300 hours; 2) more than 500 hours; 3) between 200 and 500 hours?
1. A manufacturer’s annual losses follow a distribution with density function f(x) = 2.5(0.6)2.5/ x 3.5 , x > 0.6 0, otherwise. The manufacturer purchases an insurance policy to cover its annual losses with an annual deductible of 2. Calculate the mean of the manufacturer’s annual losses paid by the insurance policy. (A) 0 (B) 0.05 (C) 0.07 (D) 0.12 (E) 0.16 1. A manufacturer's annual losses follow a distribution with density function 2.5(0.6)2.5 f(x)-350.6 0, otherwise The manufacturer purchases...
610] Prove that for an exponential distribution, the expected value of the distribution is
Assume that the failure times are independent Exponential random variables with mean ? You seek to conduct a chi-square test of the hypotheses H0: H7 at the 5% significance level. What is the observed value of the test statistic x2s? (correct to 3 decimal places)
5. You are given that X1 and X2 follow an exponential distribution with mean 10 and 20, respectively. Both Tommy and Tony want to create a new distribution using X1 and X2 to model the waiting time (in mins), X, at a doctor's office. (i) Based on Tommy's Judgement: 80% of the chance, the waiting time follows a distribution as X1 and 20% of the chance, it follows the same distribution as X. (ii) Tony would like to use a...
Distances between flaws in fiber-optic cable follow an exponential distribution with a mean of 30 meters. For a specific cable installation, you need to know the probability that the next flaw will occur between 20 and 40 meters from the current location.