Homework Answers
Add Answer to:
2. An insurance company offers an appliance warranty that pays the current value of an appliance...
An insurance policy pays for a random loss X subject to a deductible of 550. The...
An insurance policy pays for a random loss X subject to a deductible of 550. The loss amount is modeled as a continuous random variable with density function 4500 for x > 500 f(x) = { otherwise Determine the expected payment made under this insurance policy.
1. (3 POINTS) An insurance policy pays a individual $500 per day for up to 3...
1. (3 POINTS) An insurance policy pays a individual $500 per day for up to 3 days of hospitalization and $100 per day for each day of hospitalization thereafter. The number of days of hospitalization is a random variable X with P(X=x) = (6-x)/15, if x = 1,2,3,4,5. Calculate the expected payment for hospitalization under this policy. 2. (4 POINTS) An insurance policy reimburses a loss up to a benefit limit 0f $10. There is no deductible. The policyholder’s...
An insurance company offers its policyholders a number of different premium payment options. For a randomly...
An insurance company offers its policyholders a number of different premium payment options. For a randomly selected policyholder, let X be the number of months between successive payments. The cumulative distribution function of X is F(x) = {0, if x < 1, 0.4, if 1 lessthanorequalto x < 3, 0.6, if 3 lessthanorequalto x < 5, 0.8, if 5 lessthanorequalto x < 7, 1.0, if x greaterthanorequalto 7. (a) What is the probability mass function of X? (b) Compute P(4...
An insurance company issues a policy on a horse trailer under the following conditions: The replacement...
An insurance company issues a policy on a horse trailer under the following conditions: The replacement cost ($6,000) will be paid for a total loss. If it is not a total loss, but the damage is more than $3,000, then $2,700 will be paid. Nothing will be paid for damage costing $3,000 or less and of course nothing is paid out if there is no damage. The company estimates the probability of the first three events as 0.08, 0.19, and...
show all work Problem 5 An insurance company issues a policy on a car under the...
show all work
Problem 5 An insurance company issues a policy on a car under the following conditions: (1) The replacement cost of $37,000 will be paid for a total loss. (ii) If it is not a total loss, but the damage is more than $11,000, then only $ 10,500 will be paid. (iii) Nothing will be paid for damage costing $11,000 or less and, (iv) Nothing will be paid out if there is no damage. The company estimates, based...
SELF ASSESSMENT 2 An insurance company offers policyholders a number of different Premium payment options. For...
SELF ASSESSMENT 2 An insurance company offers policyholders a number of different Premium payment options. For a randomly selected policyholder, let X be the number of months between successive payments. The cumulative distribution function,cdf, of X is as follows: F(x) = 0x< 1 0.30 15x<3 0.40 35x< 4 10.45 4 < x < 6 0.60 6<x< 12 x 12 1 i. Determine the probability distribution function, f(x). ii. Find the expectation and standard deviation of X. iii. Compute,P(3 SXS 6).
Question 3-6 An insurance company each policy follows a Poisson distribution with a mean 3. has issued 75 policies. The number of claims filed under Assuming that the claims filed by each policyh...
Question 3-6 An insurance company each policy follows a Poisson distribution with a mean 3. has issued 75 policies. The number of claims filed under Assuming that the claims filed by each policyholder are independent of each other, what is the approximate probability that more than 250 claims will be filed by the group of policyholders? A) 0.048 B 0.168 C) 0.424 D) 0.576 E) 0.952 Question 3-7 650X and let X have the following probability density function: Let Y...
1. Alpha Insurance is a property and liability insurer that enters into a surplus-share reinsurance treaty...
1. Alpha Insurance is a property and liability insurer that enters into a surplus-share reinsurance treaty with Strongoak Re as the 1st surplus and Lastresort Re as the 2nd surplus. Alpha has a retention limit of $200,000 on any single building, and up to 3 lines of insurance are ceded to Strongoak Re and up to 4 lines of insurance are ceded to Lastresort Re. Alpha Insurance also writes a substantial amount of commercial liability insurance as well. Alpha has...
Question 1 BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the...
Question 1 BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of its 45-year-old vice-president, Warren. The annual cost per $1,000 of coverage for a person aged 45 to 49 is $1.80. If Warren has paid $25 toward the cost of the insurance, what is the cost of hte policy includible in Warren's gross income? 1) $278.00 2) $144.00 3) $54.00 4) $29.00 5) $0 Question 2 During 2019, Edward East had wages of...
A health insurance company knows that there are two types of customers (smokers and non-smokers), each...
A health insurance company knows that there are two types of customers (smokers and non-smokers), each facing different health risks. The probabilities of getting sick and the healthcare costs in the case of illness for the two customer types is given in the table below. Group Healthcare costs Probability of getting sick Smokers $1200 50% Non-smokers $1200 20% Assume that each customer has a monthly income of $1600 and has a utility function given by U(x)=sqrt(x), where x is the...
An insurance policy pays for a random loss X subject to a deductible of 550. The loss amount is modeled as a continuous random variable with density function 4500 for x > 500 f(x) = { otherwise Determine the expected payment made under this insurance policy.
An insurance company offers its policyholders a number of different premium payment options. For a randomly selected policyholder, let X be the number of months between successive payments. The cumulative distribution function of X is F(x) = {0, if x < 1, 0.4, if 1 lessthanorequalto x < 3, 0.6, if 3 lessthanorequalto x < 5, 0.8, if 5 lessthanorequalto x < 7, 1.0, if x greaterthanorequalto 7. (a) What is the probability mass function of X? (b) Compute P(4...
show all work
Problem 5 An insurance company issues a policy on a car under the following conditions: (1) The replacement cost of $37,000 will be paid for a total loss. (ii) If it is not a total loss, but the damage is more than $11,000, then only $ 10,500 will be paid. (iii) Nothing will be paid for damage costing $11,000 or less and, (iv) Nothing will be paid out if there is no damage. The company estimates, based...
SELF ASSESSMENT 2 An insurance company offers policyholders a number of different Premium payment options. For a randomly selected policyholder, let X be the number of months between successive payments. The cumulative distribution function,cdf, of X is as follows: F(x) = 0x< 1 0.30 15x<3 0.40 35x< 4 10.45 4 < x < 6 0.60 6<x< 12 x 12 1 i. Determine the probability distribution function, f(x). ii. Find the expectation and standard deviation of X. iii. Compute,P(3 SXS 6).
Question 3-6 An insurance company each policy follows a Poisson distribution with a mean 3. has issued 75 policies. The number of claims filed under Assuming that the claims filed by each policyholder are independent of each other, what is the approximate probability that more than 250 claims will be filed by the group of policyholders? A) 0.048 B 0.168 C) 0.424 D) 0.576 E) 0.952 Question 3-7 650X and let X have the following probability density function: Let Y...
Most questions answered within 3 hours.
-
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 2 hours ago -
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 2 hours ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 4 hours ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 5 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 5 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 7 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 8 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 8 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 8 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 8 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 9 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 9 hours ago