ZuoTi.Pro
Question

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.

math   Statistics-And-Probability   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)

All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
An insurance company has 10,000 automobile policyholders. The expected yearly claim per policy holder is $240...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Similar Homework Help Questions

  • 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.

  • An insurance policy sells for ​$600.Based on past​ data, an average of 1 in 125 policyholders wil...

    An insurance policy sells for ​$600.Based on past​ data, an average of 1 in 125 policyholders will file a​ $10,000 ​claim, an average of 1 in 250 policy holders will file a $40,000 ​claim, and an average of 1 in 500 policyholders will file a ​$60,000 claim. Find the expected value​ (to the​ company) per policy sold. If the company sells 20,000 ​policies, what is the expected profit or​ loss?

  • An insurance company sells a policy for $1250. Based on past data, an average of 1...

    An insurance company sells a policy for $1250. Based on past data, an average of 1 in 50 policyholders will win a $10,000 claim on a policy, an average of 1 in 100 policyholders will win a $25,000 claim on a policy, an average of 1 in 200 policyholders will win a $50,000 claim on a policy, and an average of 1 in 500 policyholders will win a $250,000 claim on a policy. a. Find the expected value (to the...

  • An insurance policy sells for $1200.Based on past​ data, an average of 1 in 100 policyholders...

    An insurance policy sells for $1200.Based on past​ data, an average of 1 in 100 policyholders will file a ​$20,000 ​claim, an average of 1 in 200 policyholders will file a ​$40,000 ​claim, and an average of 1 in 400 policyholders will file a ​$70,000 claim. Find the expected value​ (to the​ company) per policy sold. If the company sells 20,000 policies, what is the expected profit or​ loss?

  • - Determine the yearly premium for a $10,000 insurance policy covering an event that, over a long period of time, has o...

    - Determine the yearly premium for a $10,000 insurance policy covering an event that, over a long period of time, has occurred at the rate of 2 times in 100. Let x equal the yearly financial gain to the insurance company resulting from the sale of the policy, and let C equal the unknown yearly premium. Calculate the value of C such that the expected gain E(x) will equal zero. Then C is the premium required to break even. To...

  • An insurance policy sells for ​$800. Based on past​ data, an average of 1 in 125...

    An insurance policy sells for ​$800. Based on past​ data, an average of 1 in 125 policyholders will file a ​$10 comma 000 ​claim, an average of 1 in 100 policyholders will file a ​$50 comma 000 ​claim, and an average of 1 in 400 policyholders will file a ​$60 comma 000 claim. Find the expected value​ (to the​ company) per policy sold. If the company sells 20 comma 000 ​policies, what is the expected profit or​ loss?

  • Annual claims filed by a policy holder of an insurance company have a Poisson distribution with...

    Annual claims filed by a policy holder of an insurance company have a Poisson distribution with mean 0.4. The number of claims filed by two different policy holders are independent events. What is the probability that at least three out of ten policy holders each file at least one claim in a year?

  • 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...

  • How would I solve the following question: An insurance company sells policies for $500. Based on...

    How would I solve the following question: An insurance company sells policies for $500. Based on past data, and average of 1 in 50 policy holders will file a $10,000 claim, an average of 1 in 100 policyholders will file a $20,000 claim, and an average of 1 in 250 policyholders will file a $50,000 claim. Find the expected value (to the company) per policy sold. If the company sells 10,000 policies, what is the expected loss or profit?

  • An auto insurance company has 10,000 policy holders. Each policyholder is classified as: i) young...

    An auto insurance company has 10,000 policy holders. Each policyholder is classified as: i) young or old        ii) male or female       iii) married or single Of these policyholders, 3200 are young, 4600 are male and 7000 are married. The policyholders can also be classified as 1360 young males, 3010 married males, and 1100 young married persons. Finally, 630 of the policyholders are young married males. How many of the company’s policyholders are young, female, and single?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT