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Unformatted text preview: STAT 479
Spring 2012
Quiz 5 March 1, 2012 Students taking Exam C can be categorized into two categories — Well Prepared and
Unprepared. The probability of a Well Prepared student passing Exam C is 75%. The probability
of an Unprepared student passing the Exam C is 10%. Well prepared students who pass the exam receive an exam passing bonus which is distributed
as a gamma distribution with a = 3 and <9 =1000. Unprepared students who pass the exam receive an exam passing bonus that is uniformly
distributed between 0 and 4000. For this sitting of Exam C, there are 1200 Well Prepared students and 800 Unprepared students. Calculate the variance of the exam passing bonus. DU Eu, 77% math . The number of losses under an insurance policy are distributed as a negative binomial with a
mean of 8 and a variance of 40. The amount of a loss is distributed as a Burr distribution with parameters of a, 8 = 1000 , and
7/ = 2. A deductible of 500 is implemented. N is the random variable representing the number of
claim payments with the deductible. The variance of N is 24. Determinea,
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 Spring '10
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