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An insurer pays aggregate claims in excess of the deductible d. In p-loss premium E[(S-d)+]. You model the aggregate losses S using a Moreover, you are given the following information about the aggregate

An insurer pays aggregate claims in excess of the deductible d. In p-loss premium E[(S-d)+]. You model the aggregate losses S using a Moreover, you are given the following information about the aggregate

A First Course in Probability (10th Edition)
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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Problem 9.5. An insurer pays aggregate claims in excess of the deductible d. In return, they receive a stop-loss premium E[(S-d)+]. You model the aggregate losses S using a continuous distribution. Moreover, you are given the following information about the aggregate losses S: (i) E[(S-100)+] = 15, (ii) E[(S120)+] = 10, (iii) P[80 < S≤ 120] = 0. Find the probability that the aggregate claim amounts are less than or equal to 80.
Transcribed Image Text:Problem 9.5. An insurer pays aggregate claims in excess of the deductible d. In return, they receive a stop-loss premium E[(S-d)+]. You model the aggregate losses S using a continuous distribution. Moreover, you are given the following information about the aggregate losses S: (i) E[(S-100)+] = 15, (ii) E[(S120)+] = 10, (iii) P[80 < S≤ 120] = 0. Find the probability that the aggregate claim amounts are less than or equal to 80.
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