S479 F10 Test 2 corrected

# S479 F10 Test 2 corrected - STAT 479 Test 2 November 9 2010...

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STAT 479 Test 2 November 9, 2010 1. You are given the following grouped claim information: Amount of Claim Number of Claims Total Amount of Claims 0 5000 8 24,000 5000 10,000 12 96,000 10,000 25,000 3 55,000 25,000 100,000 2 150,000 100,000 + 1 125,000 Total 26 450,000 Calculate ( 10,000) EX and ( 40,000) .

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2. The number of dental insurance claims follow a Poisson distribution with an expected number of claims of 2. The amount of each dental claim has the following distribution: Amount of Claim Probability of Claim 100 0.50 200 0.25 300 0.20 400 0.05 Dunham Dental Insurance Company has 2000 independent insureds with dental insurance. Use the normal approximation to estimate the probability that aggregate claims will exceed 700,000 in a given year.
3. The number of dental insurance claims follow a Poisson distribution with an expected number of claims of 2. The amount of each dental claim has the following distribution: Amount of Claim Probability of Claim 100 0.50 200 0.25 300 0.20 400 0.05 Calculate (400) s f for a person with dental insurance.

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4. Warranty claims for laptop computers follow a Pareto distribution with 5
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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.

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S479 F10 Test 2 corrected - STAT 479 Test 2 November 9 2010...

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