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Homework Assignment 21:
(1)
Find a formula for
ψ
(u), given that
θ
= 4/5 and p(x) is given by (1/9)(3e
3x
) + (8/9)(6e
6x
), x>0.
(The example I worked in class last week illustrates one solution.
Another way to solve the problem is
developed in section 13.6.)
(Ans
ψ
(u) = (1/9)e
4u
+ (4/9)e
2u
)
(2) In the Group Weekly Disability Income illustration (Table 14.2.2), replace the 13week maximum by a
10week maximum.
Assuming a disability benefit of
c
per day, calculate the expected payout for each
disability claim.
(In other words, find the mean of Y.)
(Ans 28.35353
c
)
(3) The continuance function for the length of each individual hospital stay, Y, is as follows:
Length of Stay
In Days, y
Pr(Y > y)
0
1.00
1
0.95
2
0.75
3
0.50
4
0.30
5
0.10
6
0.00
An insurance policy provides a benefit of $100 per day of confinement.
Determine the mean plus the standard deviation of the benefit, given that a claim occurs.
(Ans 499)
(4) A disability insurance contract covers a group of 300 females all age 32.
The benefit is a set of
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This note was uploaded on 05/11/2011 for the course STOR 472 taught by Professor Charlesdann during the Spring '11 term at University of North Carolina School of the Arts.
 Spring '11
 CharlesDann

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