S479 F10 Quiz 6

# S479 F10 Quiz 6 - The variance of Hewitt’s portfolio of...

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Quiz 6 STAT 479 October 19, 2010 1. Hewitt Health Insurance Company sells a hospital indemnity program that covers adults and children. For adults, there is a 10% chance of a claim. Claims for adults are distributed as a gamma distribution with α = 4 and θ . For children, there is a 5% chance of a claim. Claims for children are distributed as a gamma distribution with α = 2 and θ . Hewitt has 1000 policies covering adults and 200 policies covering children.

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Unformatted text preview: The variance of Hewitt’s portfolio of policies is 75,920,000. Determine θ . 2. The Pareto distribution is being discretized using the Method of Moment Matching where the first moment is being matched. The Pareto distribution has parameters of α = 3 and θ = 400 . The span used in this process is 250. Calculate the probability assigned 500....
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S479 F10 Quiz 6 - The variance of Hewitt’s portfolio of...

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