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Unformatted text preview: n-1 out of the sum instead of Pk n-1 . ± Our solution to Example 1 on the 2009 Final is a good example of the use of this formula. 1 2 1. SOME USEFUL FORMULAS 2. Disappearing Deductibles On p. 29 Brown gives an example of a disappearing deductible. He does not, however, give a general formula. Here it is: Assume that up to A dollars, we have a deductible of D o . Our deductible disappears linearly for claims between A and B , vanishing at B . Then for a claim of X between A and B the deductible is D = B-X B-A D o . You can check that this is correct by noting that at X = A this formula yields D o while at X = B , it yields 0....
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This note was uploaded on 04/25/2011 for the course MA 170 taught by Professor Staff during the Spring '08 term at Purdue.
- Spring '08