c) The yearly insurance claims for car insurance of the ith customer is denoted by X₁. We assumeX₁, X2,... are i.i.d. The expected cost of a claim is E[X] = 1000. The standard deviation is= 3000ox₁ =If the insurance has 10000 people insured, and no other insurance contracts, how much does theinsurance need to charge each client to cover the yearly total claim with probability 0.975 atleast. (not including profit and administrative cost)

We can model the total yearly claims as a random variable Y, where Y=X1+X2+...+X10000. By linearity…

Answered: c) The yearly insurance claims for car…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

Suppose that the borrowing rate that your client faces is 9%. Assume that the equity market index has an expected return of 13% and standard deviation of 25%, that rf = 5%. Your fund manages a risky portfolio, with the following details: E(rp) = 11%, p = 15%. What is the largest percentage fee that a client currently lending (y 1)? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 1 decimal place.) y 1
The length of life of an instrument produced by a machine has a normal distribution with a mean of 12 months and standard deviation of 2 months. Find the probability that an instrument produced by this machine will last a.) less than 8 months b.) between 8 and 12 months.
Q3 a) A component has an exponential time to failure with a mean of 100 hours. (i) The component has already been in operation for its mean life. What is the probability that it will fall by 150 hours? (ii) The component will operate for another 50 hours given that it is in operation 150 hours. (iii) If 20 components are tested, what is the probability that at least one fails in less than 200 hours? Assume that the components fail independently. b) Students of National University were classified according to their favorite color: Blue 12 5 Favorite color Red 13 13 Black 25 20 Male Female If one student is selected at random, then find the probability that the selected student: (i) Doesn't like black color. (ii) Is Female and likes blue color. (iii) Is Male or like black color. (iv) Likes red color given that it is female.
The daily price of orange juice 30-day futures is normally distributed. InMarch through April 2007, the mean was 145.5 cents per pound, and standarddeviation = 25.0 cents per pound.4 Assuming the price is independent from day today, find P (x < 100) on the next day.
1)When can a Standard Deviation for set of 5 numbers be zero? In other words, what kind of relationship must exist among all numbers in order for Standard Deviation to be zero Hint: Standard Deviation E(X¡ - Mean)²/(n – 1)
I have problem in the question number #2, but the answer is with the result of question number #1
6. True or False? Assume the below life table was constructed from following individuals who were diagnosed with slow-progressing form of prostate cancer and decided not to receive treatment of any form. The calculated survival probability for year 3, if the Kaplan-Meir approach is used to calculate the survival probability, is approximately 0.7438. Time in years Number at risk Nt Number of deaths, Dt Number of censored Ct Survival Probability 0 20 1 1 20 3 2 17 1 3 16 2 1
Problem 11. (5 points) Use normal approximation to estimate the probability of getting at most 55 girls in 100 births. Assume that boys and girls are equally likely.
If the life expectacy in county A is 65 years with CI of (55, 75) and in county B is 87 years with CI of (40, 98), are the two life expectancies likely to be statistically different?
21. in a regression model if the error distribution is normally distributed then A. None B. Residual plot will give a line with 45angles with the X-axis. C. Normal probability plot will give a line with slope 1. D. Normal probability plot will give a line with 15° angles with the X-axis.
5. Suppose the number of days it takes you to get a flu shot after it is available follows this equation: Y₂ = 30 - 2X₁ where y, is the number of days until you get the flu shot, and X, is the number of people you know who have the flu. Further, suppose on average you know 2.3 people who have the flu, with standard deviation 5. Suppose that the population has size m = 10. (a) Find the average time until you get the flu shot after it is available. (b) Find the standard deviation of time until you get the flu shot after it is available. (c) What is EY;?
Assume the below life table was constructed from following individuals who were diagnosed with a slow-progressing form of prostate cancer and decided not to receive treatment of any form. Calculate the survival probability at year 1 using the Kaplan-Meir approach and interpret the results. Time in Years Number at Risk, Nt Number of Deaths, Dt Number Censored, Ct Survival Probability 0 20 1 1 20 3 2 17 1 3 16 2 1 A) The probability of surviving 1 year after being diagnosed with a slow-progressing form of prostate cancer is .85. B) The probability of surviving 1 year after being diagnosed with a slow-progressing form of prostate cancer is .85 for the individuals being followed in this study. C) The probability of surviving 1 year after being diagnosed with a slow-progressing form of prostate cancer is .85 for individuals who decided against all forms of treatment. D) The probability of surviving 1 year…

SEE MORE QUESTIONS

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

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

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

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…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

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

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS