A flood insurance policy has the following distribution this year:1. The frequency of claims has a Poisson distribution with 1 = 4.2. The severity of claims has a Pareto distribution with a = 5 and 0 = 6.Next year,the severity of claims is expected to increase by 20%. The frequency of claims isexpected to have the same distribution.A deductible of 1 per claim is imposed both this year and the next.Calculate the expected value of the aggregate annual payments for the insurer next year.A3.213.764.284.86E5.58

The following data has been given in the problem:The frequency of claims has a Poisson distribution…

Answered: A flood insurance policy has the…

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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