Homework Assignment 21 - Homework Assignment 21(1 Find a...

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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 13-week maximum by a 10-week 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 monthly payments of 1,000 each that commence 3 months following the date of disablement and
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