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…

Answered: Compute the expected value of the…

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

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter8: Sequences, Series, And Probability

Section8.7: Probability

Problem 33E: Find the probability of each event. Drawing 5 orange cubes from a bowl containing 5 orange cubes and...

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Question

A particular "homogeneous" travel accident insurance portfolio consists of 5,000
policies issued for a period of one year. The probability that a randomly
chosen 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 uniform
r.v. § ranging from $0 to $5,000. Amounts of the payoffs for
different 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 end
of calculations.
(b-a) ²
12
2) Recollect that for a distribution uniform on [a,b], the mean is and the variance is
a+b
2
2
3) When calculating, do it accurately (certainly you can use calculators); just in case, double check.

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