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S490C F08 Quiz 4

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

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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.
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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.
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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....
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