{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Homework_Assignment_20 - Homework Assignment 20(1(a If the...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework Assignment 20: (1) (a) If the adjustment coefficient R = 2, find u so that ψ (u) < 0.05. (b) Suppose that X has a Gamma(2,3) distribution and that the adjustment coefficient R = 1. Find θ , the relative security loading. (c) Suppose that X is exponential with mean 2. If ψ (0) = 0.8, what is ψ (1)? (d) Suppose that X is uniformly distributed on [0,4] and that u=5. Given that the surplus eventually drops below 5, what is the probability that, the first time this happens, the surplus is between 3 and 5? (Ans (a) u 1.4979 (b) 7/8 (c) 0.7239 (d) 3/4 ) (2) Do parts (a) and (b) of Exercise 13.21 on page 433. (Ans: (a) (21/10)(e -3x + e -7x ) (b) 29/105) (3) A surplus process has a compound Poisson claims process with 5 claims expected per period and p(x) = (1/4) e -x/4 for x > 0. Initial surplus is 15. Premiums are collected continuously at the rate of 25 per period.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern