Now, we come back to the case of complete insurance. Below Questions 3-8 of this groupconcerns this case.Question 3Compute the expected value of the payoff to a particular client (as was told above, with nodeductible).$2500$25$75$50 A particular "homogeneous" travel accident insurance portfolio consists of 5,000policies issued for a period of one year. The probability that a randomlychosen insured will require the reimbursement of her/his losses is 3%,and if a loss event has occurred, then the amount of the loss is a uniformr.v. § ranging from $0 to $5,000. Amounts of the payoffs fordifferent policies are independent.Finish the following Questions: 1-8. Numerical answers below may be rounded.Advices: 1) It make sense to set $100 as a unit of money and recalculate the answer at the very endof calculations.(b-a) ²122) Recollect that for a distribution uniform on [a,b], the mean is and the variance isa+b223) When calculating, do it accurately (certainly you can use calculators); just in case, double check.

To compute the expected value of the payoff to a particular client with no deductible, we need to…

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Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

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A life insurer issued a special endowment insurance policy to a life aged 35, with term 5 years. The death benefit payable at the end of the year of death, is equal to £1, 000 plus the reserve that would have been held at the end of the year had the policyholder been alive. The maturity benefit (benefit paid at maturity if the policyholder still alive) is £1, 000. The premium is £200, payable annually in advance. The basis is AM92 ultimate life table and the interest is 4% per annum. (a) Find the reserve just before the payment of the 3rd premium by using the recursive relation between reserves. (b) Find the policy value at issuance using the same recursive method as above. (c) Explain why your answer to (b) is not consistent with the equivalence principle and give two examples of how this may have arisen.
James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
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Illu.16 : On 31st Lecember, 2003 Andhra Traders Lid, shored in thei accouts the following balances : Rs. 1.50.000 Debenture Redemption Fund Debenture Redemption Fund Investments 1.50,000 5% Debentures 150,000 On 1st March, 2004, the Company sold the investments for Rs.150,500 and the debentures were paid off. Prepare (a) Debenture A/e (b) Debenture Redemption Fud a/c (c) Debenture Redemption Fund Investment a/e. CS Scanned with CamScanner
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Compute the expected value of the payoff to a particular client (as was told above, with no deductible). O $2500 O $25 $75 O $50