S490C F07 Test 1

S490C F07 Test 1 - 1(5 points FX(t =(t2-1/9999 for 1

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1. (5 points) F X (t) = (t 2 -1)/9999 for 1<x<100. Calculate E(X), Var(X), and the 60 th percentile of X.
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2. (5 points) Purdue University has decided to provide a new benefit to each class at the university. Each class will be provided with group life insurance. Students in each class will have 5,000 of coverage while the professor for the class will have 20,000. STAT 490C has 15 students all age 22 split 11 males and 4 females. The class also has an aging professor. The probability of death for each is listed below: Age Gender Probability of Death 22 Male .005 22 Female .003 52 Male .020 The insurance company providing the coverage charges a premium equal to the expected claims plus one standard deviation. Calculate the premium.
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3. (7 points) The number of claims follows a Poisson distribution with a mean of 3. The distribution of claims is f X (1) = 1/3 and f X (2) = 2/3. Calculate f S (4).
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4. (6 points) Losses in 2006 followed an exponential distribution with a mean of 10,000. In 2007, losses are subject to uniform inflation of 10%. The insurance
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This note was uploaded on 03/15/2012 for the course STAT 490 taught by Professor Na during the Fall '11 term at Purdue.

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S490C F07 Test 1 - 1(5 points FX(t =(t2-1/9999 for 1

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