Company ABC provides a warranty on a product that it produces. Each year, the number ofwarranty claims follows a binomial distribution with mean 1.5 and variance 1.125.Company ABC purchases an insurance policy that will reduce its overall warranty claim paymentcosts. The insurance policy will pay 5000 for each warranty claim received until the end of the year;however, the total annual policy payment will not be greater than 15,000.Calculate the expected amount of annual insurance policy payments to Company ABC.67249957728869914110

Answered: Image /qna-images/answer/ecb45caf-7ae8-46f9-8be6-a3e1335ae4dc.jpg

Answered: Company ABC provides a warranty on a…

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

Google's stock (GOOG) was tracked for 10 days, showing closing prices of 1,106.65; 1,104.37; 1,128.64; 1,120.53; 1,109.53; 1,110.76; 1,137; 1,068.2; 1,113.1; 1,136.3. Calculate the range of the dataset.
Suppose that the time required to complete a 1040R tax form is normally distributed with a mean of 100 minutes and a standard deviation of 10 minutes. What proportion of 1040R tax forms will be completed in at least 111 minutes? Round your answer to at least four decimal places.
Jack invests in a mutual fund with annual returns that follow a Normal model with mean14% and standard deviation 9%. What is the probability Jack makes between 10% and 30%?
If the age distributions of two populations are very similar, the age-adjusted all-cause mortality rates for the two populations must also be very similar. True False
A study of Brown Bag Company's payment practices showed that the company pays its vendors 20 days after the accounting department receives the invoice. The standard deviation is 5 days. Assuming that there is a normal distribution across the company's payments, what percent of the invoices are paid within 15 days of receiving them? Based on your answer, recommend an effective payment strategy for the company.
The actual monthly demand of special pizza in the past 6 months were: 449, 352, 413, 348, 290, 352 If a four-month moving average forecasting model is used to generate forecasts, what is the value of the Mean Absolute Percent Error (in percent)? Use at least 4 decimals.
The Credit Risk Department of a major bank estimates the default rate on loans under $10,000 to be 4%. The bank will make 2400 loans that are under $10,000 next month. Find the mean of ^p, where ^p is the proportion of defaults on the 2400 loans under $10,000 to be made next month.
The inflation adjusted annual return of a diversified asset portfolio is assumed to have a normal distribution with a mean of 3.5% and a standard deviation of 1.25%. Represent the value for the inflation adjusted annual return that 95% of outcomes would exceed on a diagram and determine this value.
Suppose the returns of a particular group of mutual funds are normally distributed with a mean of 9.5% and a standard deviation of 5.1%. If the manager of a particular fund wants to be sure that his fund is NOT in the bottom 25% of funds with the lowest return, what return must his fund have? (please round your answer to 2 decimal places)
5. The changes in the values of two investment portfolios are modelled as Normal distributions. From day to day, the first investment portfolio changes in value with mean 2.6% and standard deviation 1.8%. From day to day, the second investment portfolio changes in value with mean 2.2% and standard deviation 2.5%. An investor is hoping for growth of at least 4%. Which portfolio is most likely to give growth of 4%?
Suppose the returns of a particular group of mutual funds are normally distributed with a mean of 9.9% and a standard deviation of 3.7%. If the manager of a particular fund wants his fund to be in the top 10% of funds with the highest return, what return must his fund have?
2. Edit the randomfund script to reflect your revised model and run it 600 times. Include a printout of your revised function.

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