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S490C F07 Quiz 1

# S490C F07 Quiz 1 - than 2100 claims 3 The random variable X...

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Stat 490C Quiz 1 September 4, 2007 1. The random variable X is the number of dental claims in a year and is distributed as a gamma distribution given parameter θ and with parameter α = 1. θ is distributed uniformly between 1 and 3. Calculate E(X) and Var(X). 2. A dental insurance company has 1000 insureds. Assume the number of claims from each insured is independent. Using the information in Problem 1 and the normal approximation, calculate the probability that the Company will incur more

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Unformatted text preview: than 2100 claims. 3. The random variable X is distributed as a Pareto distribution with parameters α and θ. E(X) = 1 and Var(X) = 3. The random variable Y is equal to 2X. Calculate the Var(Y). 4. The number of hospitalization claims in a year follows a Poisson distribution with a mean of λ. The probability of exactly three claims during a year is 60% of the probability that there will be 2 claims. Determine the probability that there will be 5 claims....
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