S490C F07 Quiz 3

S490C F07 Quiz 3 - The sum of X is 213 and the sum of X 2...

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STAT 490C Quiz 3 October 16, 2007 1. Brown Assurance Company has a surplus of 3 at the end of 2006. Each year Brown collects premiums of 5 at the beginning of the calendar year. During the calendar year, Brown earns 10% interest. At the end of the calendar uear, Brown pays any losses incurred. The distribution of annual losses is 0, 5, and 10 with a probability of 0.3, 0.5, and 0.2 respectively. Calculate the probability of ruin prior to the end of 2009.
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2. You are given the following sample of claims: X: 12, 13, 16, 16, 22, 24, 26, 26, 28, 30
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Unformatted text preview: The sum of X is 213 and the sum of X 2 is 4921. H is that x = 17 and H 1 is that x > 17. Calculate the z statistic, the critical value(s) assuming a significance level of 1%, and the p value. State your conclusion with regard to the Hypothesis Testing. 3. A random sample, X1, X2, , Xn, is drawn from a distribution with a mean of 2/3 and a variance of 1/18. = (X1 + X2 + + Xn)/(n-1) is the estimator of the distribution mean . Find MSE( )....
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S490C F07 Quiz 3 - The sum of X is 213 and the sum of X 2...

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