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A group policy, with 15 employees, offers a basic and a supplemental plan. i. The basic plan has an ordinary deductible of $300. The supplemental plan has an ordinary deductible of $1000. ii. 80% choose the basic plan, 20% the supplemental. i. The number of claims and claim amounts are mutually independent. iv. The number of claims in the group has a negative binomial distribution with parameters r= 15 and B = 0.65. v. If a claim occurs, the distribution of loss is as follows: Pr(X ) 17% 500 750 5% 1250 60% 2500 18% Calculate the expected total payment for the policy.

A group policy, with 15 employees, offers a basic and a supplemental plan. i. The basic plan has an ordinary deductible of $300. The supplemental plan has an ordinary deductible of $1000. ii. 80% choose the basic plan, 20% the supplemental. i. The number of claims and claim amounts are mutually independent. iv. The number of claims in the group has a negative binomial distribution with parameters r= 15 and B = 0.65. v. If a claim occurs, the distribution of loss is as follows: Pr(X ) 17% 500 750 5% 1250 60% 2500 18% Calculate the expected total payment for the policy.

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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A group policy, with 15 employees, offers a basic and a supplemental plan. i The basic plan has an ordinary deductible of $300. The supplemental plan has an ordinary deductible of $1000. ii. 80% choose the basic plan, 20% the supplemental. i. The number of claims and claim amounts are mutually independent. iv. The number of claims in the group has a negative binomial distribution with parameters r = 15 and ß = 0.65. v. If a claim occurs, the distribution of loss is as follows: Pr(X )| 17% 500 750 5% 1250 60% 2500 18% Calculate the expected total payment for the policy.
Transcribed Image Text:A group policy, with 15 employees, offers a basic and a supplemental plan. i The basic plan has an ordinary deductible of $300. The supplemental plan has an ordinary deductible of $1000. ii. 80% choose the basic plan, 20% the supplemental. i. The number of claims and claim amounts are mutually independent. iv. The number of claims in the group has a negative binomial distribution with parameters r = 15 and ß = 0.65. v. If a claim occurs, the distribution of loss is as follows: Pr(X )| 17% 500 750 5% 1250 60% 2500 18% Calculate the expected total payment for the policy.
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