Problem 9.5.An insurer pays aggregate claims in excess of the deductible d. Inreturn, they receive a stop-loss premium E[(S-d)+]. You model the aggregate losses S using acontinuous distribution. Moreover, you are given the following information about the aggregatelosses 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.

It is given that an insurer pays aggregate claims in excess of the deductible d.

Answered: An insurer pays aggregate claims in…

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...

See similar textbooks

Similar questions

1.) Check off O all of the functions that show an exponential growth. O A.) y=2x+5 O B.) y=2* O C.) y=8(.9)* O D.) y=100 – 6x O E.) f(x)=12(1.016)* O F.) f(n)=24n² O G.) p(n)=23,000(1.05)"
. Investments If $5500 is invested for x years at 12%interest, compounded quarterly, the future value thatresults is S = 5500(1.03) 4xdollars.a. Graph this function for 0 <= x <= 8.b. Use the graph to estimate when the money in theaccount will double.
Is y = 3(x-1) + 4 an increasing or a decreasingfunction?
. For example, if Eloisa invests in an I-bond which compounds twice a year with APR 8%, 8% then each 6 months, the money in the account will be assessed 4% interest. This 2 is 4% semi-annual growth. Thus the growth factor is 1.04. (a) Fill in the table for how much money is in Eloisa's I-bond at each time after initial investment of $200, assuming the interest rate does not change. 1.5 years 2 years t years t amount 0 months 6 months $200 = 1 year (b) As a percent, how much larger is Eloisa's account after one year compared to her original investment? What was the percent change?
A. Direction: Complete the table below to show the value of Principal = 1 at the end of one year (t = 1) after an increasing number n of compounding periods per year at a 100% annual rate. P(1+r/n)^nt Yearly Quarterly Monthly Daily Hourly n n=1 21. n = 22. n = 23. n = 24. n = 2 25. 26. 27. 28. 2 29. 30 31 32. A
Sarah pays a flat rate plus a rate per minute for her phone plan as shown in the graph above. The cost of Sarah's phone plan, C(t), can be represented by which of the following functions? A: C(t) = -0.10t+25 B: C(t) = 0.10t+25 C: C(t) = 25(0.10)^t D: C(t) = 25(1+0.10)^t
If you deposit A which yields returns of B at the end of each of the first n years then establish the mathe-matical equation to calculate the rate of return, r, from this investment.A = R10000, B=R2000, n=7

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS

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