4) Suppose a loss process X~EXP(100) for a policyholder. An insurer writes on this policyholder with a deductible of d = 50 per loss. %3D a) Find E (YL) the insurer's expected loss per loss. b) Find E (YP) the insurer's expected loss per payment. c) Find the policyholder's expected loss E(X A 50). (The policyholder has to pay any loss under 50 So want the
4) Suppose a loss process X~EXP(100) for a policyholder. An insurer writes on this policyholder with a deductible of d = 50 per loss. %3D a) Find E (YL) the insurer's expected loss per loss. b) Find E (YP) the insurer's expected loss per payment. c) Find the policyholder's expected loss E(X A 50). (The policyholder has to pay any loss under 50 So want the
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
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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Transcribed Image Text:4) Suppose a loss process X~EXP(100) for a policyholder. An insurer
writes on this policyholder with a deductible of d
50 per loss.
%3D
a) Find E (Y) the insurer's expected loss per loss.
b) Find E (YP) the insurer's expected loss per payment.
c) Find the policyholder's expected loss E(X A 50). (The policyholder
has to pay any loss under 50. So want the expected loss per loss.)
(Hint: Use formulas for the exponential distribution. E(YL) = E(X)-
E(X Ad).
%3D
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