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Unformatted text preview: Problem 10. The amount of a loss is exponentially distributed with mean 70. An insurance
policy has ordinary deductible of 20 and a policy limit of 80. Due to reinsurance, an insurance
company pays only 80% of the of policy obligation. Determine the expected payment of the
company, given that a payment is made.
(1) (2) (3) (4)  The number of male employees in a randomly selected office of 10 employees has a binomial
distribution with parameters m = 10 and q =0.3. It is also known that on average a male is
watching 4 MSU basketball games in a year while a female on average is watching 2 games.
Also, with regard to the standard deviation of the number of yearly watched games, it is 9 for a
male and 6 for a female.
Problem 11. What is the average number of games watched in a year by all the employees of the
selected office?
(1) (2) (3) (4) Problem 12. What is the standard deviation of the number of games watched in a year by all the
female employees of the selected office?
(1) (2) (3) (4)...
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 Spring '14
 ShlomoLevental

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