c) The yearly insurance claims for car insurance of the ith customer is denoted by X₁. We assume X₁, X2,... are i.i.d. The expected cost of a claim is E[X₂] = 1000. The standard deviation is ox, = 3000 If the insurance has 10000 people insured, and no other insurance contracts, how much does the insurance need to charge each client to cover the yearly total claim with probability 0.975 at least. (not including profit and administrativn
c) The yearly insurance claims for car insurance of the ith customer is denoted by X₁. We assume X₁, X2,... are i.i.d. The expected cost of a claim is E[X₂] = 1000. The standard deviation is ox, = 3000 If the insurance has 10000 people insured, and no other insurance contracts, how much does the insurance need to charge each client to cover the yearly total claim with probability 0.975 at least. (not including profit and administrativn
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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![c) The yearly insurance claims for car insurance of the ith customer is denoted by X₁. We assume
X₁, X2,... are i.i.d. The expected cost of a claim is E[X] = 1000. The standard deviation is
= 3000
ox₁ =
If the insurance has 10000 people insured, and no other insurance contracts, how much does the
insurance need to charge each client to cover the yearly total claim with probability 0.975 at
least. (not including profit and administrative cost)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50676bcf-7237-4f00-9235-8bc1502a02cd%2F23259329-d092-4323-aa0c-9d3d75bf68c3%2Frgwydk8_processed.png&w=3840&q=75)
Transcribed Image Text:c) The yearly insurance claims for car insurance of the ith customer is denoted by X₁. We assume
X₁, X2,... are i.i.d. The expected cost of a claim is E[X] = 1000. The standard deviation is
= 3000
ox₁ =
If the insurance has 10000 people insured, and no other insurance contracts, how much does the
insurance need to charge each client to cover the yearly total claim with probability 0.975 at
least. (not including profit and administrative cost)
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