{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

S479 F10 Quiz 2 Solutions

# S479 F10 Quiz 2 Solutions - Quiz 2 STAT 479 September 9...

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

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Quiz 2 STAT 479 September 9, 2010 1. Dental claims during a year are distributed as a 2 point mixture distribution with a weight of 70% for Distributon 1 and 30% for Distribution 2. Distribution 1 is a Pareto distribution with a = 3 and 6 = 400 Distribution 2 is a Gamma distribution with (1 = 2 and 0 = 2000. An insurance company has 2000 independent dental policies which pay 100% of all claims. Using the normal approximation, estimate the probability that total claims will exceed 2.7 million. ' r52? _ E2 292 2 Ami 22” CE) 6:1 ~06)» é) (1:34 .3 (‘4 3 F063: QMME .2222 kﬁgngEjﬁ DEED EE- 62E) 22 2;) E [QMEEECEEEEE EE EEEEEE } 2:: EW E 2522 22206232 (22223E6EE6 E) KEY E 222 E l“ El; Egg 6 P7>E7DEEEEEE>E “7”(1 :EX GEM/WEE: 6 7)6:22>3E6?>)E“’ 3 E 2m EEEEEEEEEEEE E222» 222.22.222.22; 7 5:92 WQ 0226:): NEE) E65623fE 722/2200» 022,2)2 EEEEEEEE E 65): 22226.2 96E) 02269:: (222222}652762 22:2) ”ﬁg/176230306?“ QQQQEEEEEEEE ”5732: 6352 \$22917ij¢3®3 E MPE< 2-7 WEE“ W WEE/:22 .2: E2222: 2 2223.22 M6» 2222 E22227 2. Cancer claims follow an exponential distribution with parameter 6. VaR0.75 (X) = 170.5142 Calculate k so that the standard deviation principle is equal to TVaRo,75(X). )Cgm ﬁll/gs E<X>: @li’f): Q 2“ P); “an; E (X2): 5% (‘2’ a,” 7%; _ Z: A?“ IV; a” Ow M: E'z’xgwléffril gale w 5:2 52 GM % {\JME g @ ...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

S479 F10 Quiz 2 Solutions - Quiz 2 STAT 479 September 9...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online