An insurance company has 10,000 outstanding fire policies. For each policy, there is an expected claim...
An insurance company has 10,000 outstanding fire policies. For each policy, there is an expected claim of $100 with a standard deviation of $400. The individual claims are independent random variables. What is the probability that the total of all claims exceeds $1,100,000.
Homework Answers
Add Answer to:
An insurance company has 10,000 outstanding fire policies. For
each policy, there is an expected claim...
An insurance company has 10,000 automobile policyholders. The expected yearly claim per policy holder is $240...
An insurance company has 10,000 automobile policyholders. The expected yearly claim per policy holder is $240 with a standard deviation of $800. Approximate the probability that the yearly claim exceeds $2.7 million.
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...
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 $...
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...
(3) An insurance agency sells automobile insurance policies. Suppose claims on the policies are approximately Normal...
(3) An insurance agency sells automobile insurance policies. Suppose claims on the policies are approximately Normal with a mean of $5000 and a standard deviation of $1000. The agency sells n-100 of the policies for the coming year, consider the sample mean claim X10o of the 100 policies. (a) What is the probability an individual loss exceeds $6000? (b) What is the probability X100 exceeds $6000? (c) What is the probability X100 falls between $4900 and $$100?
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 has issued 100 policies. The number of claims filed under each policy follows a Poisson distribution with a mean 2. Assuming that the claims filed by each policyholder are in...
An insurance company has issued 100 policies. The number of claims filed under each policy follows a Poisson distribution with a mean 2. Assuming that the claims filed by each policyholder are independent of each other, what is the approximate probability that more than 220 claims will be filed by the group of policyholders? B) 0.159 A) 0.079 C) 0.444 D) 0.556 E) 0.921 Question 2-20 An actuary is studying claim patterns in an insurer's book of business. He compiles...
Suppose a company charges an annual premium of $450 for a fire insurance policy. In case...
Suppose a company charges an annual premium of $450 for a fire insurance policy. In case of a fire claim, the company will pay out an average of $100,000. Based on actuarial studies, it determines that the probability of a fire claim in a year is 0.004. What is the expected annual profit of a fire insurance policy for the company? What annual profit can the company expect if it issues 1000 policies?
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...
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 $...
(3) An insurance agency sells automobile insurance policies. Suppose claims on the policies are approximately Normal with a mean of $5000 and a standard deviation of $1000. The agency sells n-100 of the policies for the coming year, consider the sample mean claim X10o of the 100 policies. (a) What is the probability an individual loss exceeds $6000? (b) What is the probability X100 exceeds $6000? (c) What is the probability X100 falls between $4900 and $$100?
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 has issued 100 policies. The number of claims filed under each policy follows a Poisson distribution with a mean 2. Assuming that the claims filed by each policyholder are independent of each other, what is the approximate probability that more than 220 claims will be filed by the group of policyholders? B) 0.159 A) 0.079 C) 0.444 D) 0.556 E) 0.921 Question 2-20 An actuary is studying claim patterns in an insurer's book of business. He compiles...
Most questions answered within 3 hours.
-
What is the purpose of the 2' hydroxyl group in RNA? What is
the reason this...
asked 2 seconds from now -
You currently have 20,000X ethidium bromide. You want to make
250 mL of 1X ethidium bromide...
asked 12 minutes ago -
What mass of lead is needed to absorb 348 J of heat if the temp
of...
asked 15 minutes ago -
Explain the difference between an auction with reserve
and an auction without reserve. if not specified,...
asked 17 minutes ago -
Write the net ionic equation for the precipitation reaction that
occurs when aqueous solutions of aluminum...
asked 20 minutes ago -
How do we find the slope distance, given the horizontal distance
and the zenith angle?
For...
asked 19 minutes ago -
The table to the right lists probabilities for the corresponding
numbers of girls in three births....
asked 30 minutes ago -
The inverse demand function for good X is P = 5−0.05Q. The
firm’s cost curve is...
asked 29 minutes ago -
The Fresh Connection is really pushing the new line of juice
products. Given that it takes...
asked 34 minutes ago -
An acute decrease in mean arterial pressure (by getting up very
quickly, for instance) will cause...
asked 33 minutes ago -
Is the pH of solutions important when using the Fluoride ISE? If
so, why?
asked 37 minutes ago -
Producer surplus is:
a.
always equal to consumer surplus.
b.
the amount paid to sellers above...
asked 38 minutes ago