S479 F10 Quiz 2 - Using the normal approximation, estimate...

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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 α = 3 and θ = 400 Distribution 2 is a Gamma distribution with α = 2 and θ = 2000. An insurance company has 2000 independent dental policies which pay 100% of all claims.
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Unformatted text preview: Using the normal approximation, estimate the probability that total claims will exceed 2.7 million. 2. Cancer claims follow an exponential distribution with parameter . VaR 0.75 (X) = 170.5142 Calculate k so that the standard deviation principle is equal to TVaR 0.75 (X)....
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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 F10 Quiz 2 - Using the normal approximation, estimate...

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