26. Consider a discrete-time surplus process and assume that the frequency of the claims ineach period is Negative Binomial with mean 1 and variance 16, and the severity isExponential with mean 2. What is the adjustment coefficient for this model if the premiumis the expected value of the claims loaded by 75%? (Four decimals are expected in youranswer.)

Given that the frequency of claims in each period is Negative Binomial with mean 1 and variance 16,…

Answered: 26. Consider a discrete-time surplus…

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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A FiveThirtyEight.com article reports that “Horror movies get nowhere near as much draw at the box office as the big-time summer blockbusters or action/adventure movies ... but there’s a huge incentive for studios to continue pushing them out. The return-on-investment potential for horror movies is absurd.” To investigate how the return-on-investment compares between genres and how this relationship has changed over time, an introductory statistics student fit a model predicting the ratio of gross revenue of movies from genre and release year for 1,070 movies released between 2000 and 2018. Using the plots given below, determine if this regression model is appropriate for these data
Suppose we have the following returns for large-company stocks and Treasury bills over a six-year period: Year Large-Company US Treasury Bill 1 3.97 6.59 2 14.34 4.42 3 19.23 4.29 4 −14.45 7.32 5 −31.94 5.28 6 37.47 5.38 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this time period. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the arithmetic average risk premium over this period? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer…
.A new, miracle diabetes drug that diminishes major symptoms of diabetes has been approved by the FDA. Health care professionals and researchers believe that the new drug will prolong lifespan of diabetes patients. If the population is in steady state and the incidence is constant, what will the effect of this new drug be on the prevalence of diabetes in the population? Explain.
If a fictional treatment costs a total of $45,000 at today’s value and increases a person’s quality of life from 0.5 to 0.6 for the remainder of the person’s life from age 70 onward, and the person’s expected life span increases from 73 to 75, what is the total gain in QALYs (Quality-adjusted Life Years), and what is the ICER (Incremental Cost-effectiveness Ratio)?
(a)Consider a flight with a seating capacity of 160 seats. This flight is always full and there is a chance to be overbooked. The actual no-show rate (NSR) of the flight is 3.5% and the estimated NSR is 6.3%. If this flight is oversold according to the estimated NSR, what is the number of excess/extra passengers that will show up and there will be no seats for them on the day of departure? (b)Consider a flight with a seating capacity of 160 seats. This flight is always full and there is a chance to be overbooked. The actual no-show rate (NSR) of the flight is 3.5% and the estimated NSR is 6.3%. If the one-way fare of this flight is $300. If this flight is oversold according to the estimated NSR, what is the additional revenue that this flight will generate due to overbooking?
The following information relate to the two: Projects A and B of Augustina's Co.Ltd. State of the Economy Probability Returns of A (%) Returns of B (%) Boom Normal Recession 0.4 0.3 0.3 20 15 10 9 12 18 A. Calculate the expected return and standard deviation of Projects A and B B. If project A and B are combined in the ratio 6:4, what is the expected return and standard deviation of the portfolio
The following information relate to the two: Projects A and B of Augustina’s Co.Ltd. State of the Economy Probability Returns of A (%) Returns of B (%) Boom 0.4 20 9 Normal 0.3 15 12 Recession 0.3 10 18 1.Calculate the expected return and standard deviation of Projects A and B 2.If project A and B are combined in the ratio 6:4 , what is the expected return and standard deviation of the portfolio
1. In the credit card default data, we would like to predict the default status of a cus- tomer based on the monthly balance, the student indicator and the income. The input coding for class predictors is set as Deviation. Given the following output from logistic regression, what is the estimated probability of default for a student with a balance of $2500 and an income of $40000? Analysis of Haxinun Likelihood Estinates Standard Vald Error Chi-Square Pr > Chisq Paraneter default DF Estinate Intercept Yes -11.1924 0.4506 616.84 <.0001 balance Yes 0.00574 0.000232 611.89 <.0001 incone Yes 3.033E-6 8.203E-6 0.14 0.7115 student No Yes 0.3234 0.1181 7.49 0.0062
6. True or False? Assume the below life table was constructed from following individuals who were diagnosed with slow-progressing form of prostate cancer and decided not to receive treatment of any form. The calculated survival probability for year 3, if the Kaplan-Meir approach is used to calculate the survival probability, is approximately 0.7438. Time in years Number at risk Nt Number of deaths, Dt Number of censored Ct Survival Probability 0 20 1 1 20 3 2 17 1 3 16 2 1
25. Under what circumstances would the following assumptions not be accurate? a. The assumption that the probability law describing the number of periods until the process goes out of control follows the geometric distribution. b. The assumption that an out-of-control condition corresponds to a shift of the mean equal to Sơ. c. The assumption that the search cost is a fixed constant, a2.

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