Consider three types of claims: A, B and C. Let XA denote the random variable for the size of a randomly chosen claim of type A, and let XB and Xc denote the corresponding random variables for claims of types B and C, respectively. Assume that XA, XB and Xc are exponentially distributed with parame- ters l4 = 0.002, AB = 0.001 and Ac = 0.005, respectively. An insurance company has a portfolio of policies with 10% of claims of type A, 20% of type B, and the remaining claims of type C. Let X denote the random variable for the size of a claim chosen at ran- dom from all those on policies in the portfolio. 100) the prohahility thet a landomiy choeerolam (a)Calculate P is groater than 100 (b) Calculate E[X|Type] for types A, B and C.
Consider three types of claims: A, B and C. Let XA denote the random variable for the size of a randomly chosen claim of type A, and let XB and Xc denote the corresponding random variables for claims of types B and C, respectively. Assume that XA, XB and Xc are exponentially distributed with parame- ters l4 = 0.002, AB = 0.001 and Ac = 0.005, respectively. An insurance company has a portfolio of policies with 10% of claims of type A, 20% of type B, and the remaining claims of type C. Let X denote the random variable for the size of a claim chosen at ran- dom from all those on policies in the portfolio. 100) the prohahility thet a landomiy choeerolam (a)Calculate P is groater than 100 (b) Calculate E[X|Type] for types A, B and C.
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter14: Counting And Probability
Section14.2: Probability
Problem 3E: The conditional probability of E given that F occurs is P(EF)=___________. So in rolling a die the...
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