S490C F08 Quiz 4 - Each claim during 2007 distributed...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Math 490C Fall 2008 Quiz 4 1. The number of claims in a year for a Hospital Indemnity Policy have the following distribution: N p n 0 .4 1 .3 2 .2 3 .1 The amount of each claim has the following distribution: X f(x) 1000 0.75 2000 0.25 A stop loss policy is purchased to cover all claims in excess of an aggregate amount equal to 120% of the expected aggregate claims. Calculate the net stop loss premium.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. An automobile insurer has 1000 cars covered during 2008 . The number of automobile claims for each car follows a Poisson distribution with λ = 0.5.
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Each claim during 2007 distributed exponentially with a mean of 5000. Claims in 2008 are subject to uniform inflation of 10%. Assume that the number of claims and the amount of the loss are independent and identically distributed. Using the normal distribution as an approximating distribution of aggregate losses, calculate the probability that losses will exceed 3 million....
View Full Document

This note was uploaded on 03/15/2012 for the course STAT 490 taught by Professor Na during the Fall '11 term at Purdue University-West Lafayette.

Page1 / 2

S490C F08 Quiz 4 - Each claim during 2007 distributed...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online