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Homework_Assignment_13

# Homework_Assignment_13 - Calculate the probability that a...

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Homework Assignment 13: (1) Prescription drug losses, S, are modeled assuming the number of claims has a geometric distribution with mean 4, and the amount of each prescription is 40. Calculate E[(S-100) + ]. (Ans 92.16) (2) Do Exercise 12.10 on page 394. [Hint: Express the number of accidents that result in a claim payment as a random sum, then use (12.3.5).] (3) Actuaries have modeled auto windshield claim frequencies. They have concluded that the annual number of windshield claims for each individual driver follows a Poisson distribution, and the means of these Poisson distributions are gamma distributed over the population of drivers with mean 3 and variance 3.
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Unformatted text preview: Calculate the probability that a driver selected at random will file no more than 1 windshield claim next year. (Ans 5/16) (4) Do Exercise 12.12 on page 394. (5) On a given day a physician provides medical care to N A adults and N C children. N A and N C have Poisson distributions with parameters 3 and 2, respectively. The distributions of length of care per patient are as follows: Adult Child 1 hour 0.4 0.9 2 hour 0.6 0.1 N A , N C and the length of care for all individuals are independent. The physician charges 200 per hour of patient care. Determine the probability that office income on a given day is equal to 600. (Ans 10.5e-5 )...
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