a. Prudential Insurance Company provides a multiplicity of insurance policies. The probability that claims are made in any financial year is 0.04. A researcher randomly selects 500 policies. Assume, the claims follows a standard normal distribution, calculate the probability at most 30 claims are made in a financial year. b. Assume the claim in (a) is a random variable X that follows a Poisson distribution with a parameter μ. Answer the following questions: i. Write down the moment generating function Mx (t) ii. By differentiating M, (t), show that the mean and variance of X are both equal to H.
a. Prudential Insurance Company provides a multiplicity of insurance policies. The probability that claims are made in any financial year is 0.04. A researcher randomly selects 500 policies. Assume, the claims follows a standard normal distribution, calculate the probability at most 30 claims are made in a financial year. b. Assume the claim in (a) is a random variable X that follows a Poisson distribution with a parameter μ. Answer the following questions: i. Write down the moment generating function Mx (t) ii. By differentiating M, (t), show that the mean and variance of X are both equal to H.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![a. Prudential Insurance Company provides a multiplicity of insurance policies. The
probability that claims are made in any financial year is 0.04. A researcher randomly
selects 500 policies. Assume, the claims follows a standard normal distribution, calculate
the probability at most 30 claims are made in a financial year.
b. Assume the claim in (a) is a random variable X that follows a Poisson distribution with a
parameter μ. Answer the following questions:
i.
ii.
Write down the moment generating function Mx (t)
By differentiating My(t), show that the mean and variance of X are both equal to
μ.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f149725-d374-4f17-bc7b-5d8403413548%2F4ad68b7d-b3c7-4a5e-ad68-5ac63aff1db6%2F9w4wzaa.jpeg&w=3840&q=75)
Transcribed Image Text:a. Prudential Insurance Company provides a multiplicity of insurance policies. The
probability that claims are made in any financial year is 0.04. A researcher randomly
selects 500 policies. Assume, the claims follows a standard normal distribution, calculate
the probability at most 30 claims are made in a financial year.
b. Assume the claim in (a) is a random variable X that follows a Poisson distribution with a
parameter μ. Answer the following questions:
i.
ii.
Write down the moment generating function Mx (t)
By differentiating My(t), show that the mean and variance of X are both equal to
μ.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Write the given information.
VIEWStep 2: Determine the probability that at most 30 claims are made in a financial year.
VIEWStep 3: Determine the moment generating function.
VIEWStep 4: Determine the mean and variance of X by differentiating Mx(t).
VIEWStep 5: Determine the X by double differentiating Mx(t).
VIEWSolution
VIEWStep by step
Solved in 6 steps with 21 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![MATLAB: An Introduction with Applications](https://www.bartleby.com/isbn_cover_images/9781119256830/9781119256830_smallCoverImage.gif)
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
![Probability and Statistics for Engineering and th…](https://www.bartleby.com/isbn_cover_images/9781305251809/9781305251809_smallCoverImage.gif)
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
![Statistics for The Behavioral Sciences (MindTap C…](https://www.bartleby.com/isbn_cover_images/9781305504912/9781305504912_smallCoverImage.gif)
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
![Elementary Statistics: Picturing the World (7th E…](https://www.bartleby.com/isbn_cover_images/9780134683416/9780134683416_smallCoverImage.gif)
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
![The Basic Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319042578/9781319042578_smallCoverImage.gif)
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
![Introduction to the Practice of Statistics](https://www.bartleby.com/isbn_cover_images/9781319013387/9781319013387_smallCoverImage.gif)
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman