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10. Aggregate losses on an insurance coverage follow a Parets distribution with α = 2, 0 = 800. Premiums for this coverage are 500. The loss ratio R is the proportion of aggregate losses to premiums (that is, R = x/500 where X is the aggreate loss). 45 the loss ratio is less than 70%, the insurance company pays a dividend of 80% of premiums times the excess of 70% over the loss ratio. Calculate the expected value of the dividend.

10. Aggregate losses on an insurance coverage follow a Parets distribution with α = 2, 0 = 800. Premiums for this coverage are 500. The loss ratio R is the proportion of aggregate losses to premiums (that is, R = x/500 where X is the aggreate loss). 45 the loss ratio is less than 70%, the insurance company pays a dividend of 80% of premiums times the excess of 70% over the loss ratio. Calculate the expected value of the dividend.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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10. Aggragate losses on an insurance covarage follow a Pareto distribution with d = 2, 0 = 800. Prremiums for this covsrage are 50o. The loss ratio R is the proportion of aggregate losses to premiums <that is, R= x/500 wheve X is the aggreate loss). a5 the loos ratio is less han 70% , the inourance Lompany pays a dividend of 80% g przmiums times the excen of 707 ovar the loos ratio. Calculate the axpected value f the dividend. of
Transcribed Image Text:10. Aggragate losses on an insurance covarage follow a Pareto distribution with d = 2, 0 = 800. Prremiums for this covsrage are 50o. The loss ratio R is the proportion of aggregate losses to premiums <that is, R= x/500 wheve X is the aggreate loss). a5 the loos ratio is less han 70% , the inourance Lompany pays a dividend of 80% g przmiums times the excen of 707 ovar the loos ratio. Calculate the axpected value f the dividend. of
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