A small manufacturing business has a group life insurance contract on it employees. Suppose that the aggregate loss, S is distributed as a lognormal with E(S) = 0.085 and Var(S) = 25.32. Use the lognormal approximations to find Pr(S>0.1105). %3D A.5.1.1 Lognormal-u,0 (u can be negative)
A small manufacturing business has a group life insurance contract on it employees. Suppose that the aggregate loss, S is distributed as a lognormal with E(S) = 0.085 and Var(S) = 25.32. Use the lognormal approximations to find Pr(S>0.1105). %3D A.5.1.1 Lognormal-u,0 (u can be negative)
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter6: Vector Spaces
Section6.7: Applications
Problem 14EQ
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Course: Actuarial Math
![A small manufacturing business has a group life insurance contract on its
employees. Suppose that the aggregate loss, S is distributed as a lognormal with
E(S) = 0.085 and Var(S) = 25.32. Use the lognormal approximations to find
Pr(S>0.1105).
A.5.1.1 Lognormal-u,0
(µ can be negative)
1
In x - u
f(x)
: exp(-2²/2) = 4(2)/(ox),
= Z
F(x)
Ф(2),
E[X*]
exp (kµ + k?o?),
´In x – µ – ko²'
E[(X ^ x)*]
exp (kи + }?а?) Ф
+ a*[1 – F(x)],
%3D
Mode
exp (и — а?).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6447f1ac-27fc-4fbe-ae00-175a0b1d54da%2Fc85f7917-4efb-4d23-b891-83fd1ce0843e%2F106k4kj_processed.png&w=3840&q=75)
Transcribed Image Text:A small manufacturing business has a group life insurance contract on its
employees. Suppose that the aggregate loss, S is distributed as a lognormal with
E(S) = 0.085 and Var(S) = 25.32. Use the lognormal approximations to find
Pr(S>0.1105).
A.5.1.1 Lognormal-u,0
(µ can be negative)
1
In x - u
f(x)
: exp(-2²/2) = 4(2)/(ox),
= Z
F(x)
Ф(2),
E[X*]
exp (kµ + k?o?),
´In x – µ – ko²'
E[(X ^ x)*]
exp (kи + }?а?) Ф
+ a*[1 – F(x)],
%3D
Mode
exp (и — а?).
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