An insurance company pays 90% of the amount that exceeds a deductible of 200 $, with a maximum payment of 1,800$. The company loads the expectation of this random variable by 20%, and charges this premium to the policyholder. If the losses are exponentially distributed with a mean of 950$, what is the probability that a claim surpasses the premium?
An insurance company pays 90% of the amount that exceeds a deductible of 200 $, with a maximum payment of 1,800$. The company loads the expectation of this random variable by 20%, and charges this premium to the policyholder. If the losses are exponentially distributed with a mean of 950$, what is the probability that a claim surpasses the premium?
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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