5. For aggregate losses, S:• The amount of loss is assumed to follow a negative binomial distribution with a mean of 3 and avariance of 3.6• The amount of loss for each claim submitted by the policyholder is known to follow a uniformdistribution with parameters 0 and 20.Define:a) 95%th percentile of the S distribution using the normal approximationb) 95%th percentile of the S distribution using the lognormal approach

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Answered: Define: a) 95%th percentile of the S…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Suppose that the number of drivers who travel between a particular origin and destination during a designated time period has a Poisson distribution with parameter λ=20 (suggested in the article "Dynamic Ride Sharing: Theory and Practice," J. of Transp. Engr., 1997: 308-312). What is the probability that the number of drivers will a. Be at most 10? b. Exceed 20? c. Be between 10 and 20, inclusive? Be strictly between 10 and 20? d. Be within 2 standard deviations of the mean value?
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Define: a) 95%th percentile of the S distribution using the normal approximation b) 95%th percentile of the S distribution using the lognormal approach