Quiz Solutions (3) - STT459 Quiz 3 SOLUTION Name The...

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STT459- Quiz 3 SOLUTION Name: The following relates to the first 3 problems . Let X be a positive random variable that denotes the loss in the current year. Assume that X is distributed lognormal with . Remark. ( ) ( ( ) ) ( ( ( ) )) 1. What is the average loss in the current year? Hints: ( ) ( ) . What is ( ) ? (1) 6115.7 (2) 5136.4 (3) 4197.2 (4) 3162.4 2. Find the loss elimination ratio with deductible (1) .55 (2) .44 (3) .33 (4) .22 3. Find ( ) if there will be an inflation of 10% up to next year.
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