S479 F 10 Final - STAT 479 Final December 13, 2010 1. A...

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STAT 479 Final December 13, 2010 1. A health insurance company has the following sample of five claims: 500, 500, 700, 800, 1500 The company wants to model their claims using a Gamma distribution. Calculate the parameters for the Gamma distribution using the Method of Moments.
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2. The variance of a distribution will be estimated using: 2 2 () ˆ XX n The following sample is selected from the distribution: 5, 5, 8 Using the bootstrap method, estimate the mean square error in the above estimator.
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3. During the last calendar year, Purdue incurred 100 worker’s compensation claims which are summarized in the following table: Amount of Claim Number of Claims 0 5000 14 5000-15,000 16 15,000-45,000 40 More than 45,000 30 Sally wants to test the following hypothesis using the Chi Square Test at a 10% significance level: H 0 : Workers Compensation claims are uniformly distributed with θ = 60,000. H 1 : Workers Compensation claims are not uniformly distributed with θ = 60,000. Calculate the Chi Square test statistic. Determine the critical value for this test. State your conclusion with regard to the hypothesis.
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4. Using simulation, Farhana estimates the claim payments that will be made under a dental insurance policy. The policy has a $50 deductible for each claim. The maximum that will be paid under the dental policy for all claims in a year is $500.
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This note was uploaded on 03/15/2012 for the course STAT 479 taught by Professor Na during the Spring '10 term at Purdue University-West Lafayette.

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S479 F 10 Final - STAT 479 Final December 13, 2010 1. A...

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