5. Losses for a line of insurance follow a Pareto distribution with 0 = 2000 and a = 2. An insurer sells policies that pay 100% of each loss up to $5000. The next year the insurer changes the policy terms so that it will pay 80% of each loss after applying a $100 deductible. The $5000 limit continues to apply to the original loss amount. That is, the insurer will pay 80% of the loss amount between $100 and $5000. Inflation will be 4%.

5. Losses for a line of insurance follow a Pareto distribution with 0 = 2000 and a = 2. An insurer sells policies that pay 100% of each loss up to $5000. The next year the insurer changes the policy terms so that it will pay 80% of each loss after applying a $100 deductible. The $5000 limit continues to apply to the original loss amount. That is, the insurer will pay 80% of the loss amount between $100 and $5000. Inflation will be 4%.

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Description: 5. Losses for a line of insurance follow aPareto distribution with 0 = 2000 and a= 2. An insurer sells policies that100% of each loss up to $5000. The nextthe insurer changes the policy termsрayyearso that it will pay 80% of each loss afterapplying

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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