S479 F10 Quiz 4

# S479 F10 Quiz 4 - Calculate d. 2. Losses follow an...

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Quiz 4 STAT 479 September 28, 2010 1. Losses prior to any deductible for a health insurance policy are distributed as a Pareto distribution with 1000 and 5 . Losses are subject to a franchise deductible of d. The expected value per payment after the deductible is 820.

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Unformatted text preview: Calculate d. 2. Losses follow an exponential distribution with a mean of 1000. The insurance company wants to implement an ordinary deductible that will result in a loss elimination ratio of 0.5. Calculate the ordinary deductible to be implemented....
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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 4 - Calculate d. 2. Losses follow an...

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