Consider three types of claims: A, B and C. Let XẠ denot variable for the size of a randomly chosen claim of type / and Xc denote the corresponding random variables for cl B and C, respectively.
Consider three types of claims: A, B and C. Let XẠ denot variable for the size of a randomly chosen claim of type / and Xc denote the corresponding random variables for cl B and C, respectively.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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Part b
![Consider three types of claims: A, B and C. Let XẠ denote the random
variable for the size of a randomly chosen claim of type A, and let XB
and Xc denote the corresponding random variables for claims of types
B and C, respectively.
Assume that XA, XB and Xc are exponentially distributed with parame-
ters XA = 0.002, AB = 0.001 and Xc = 0.005, respectively.
An insurance company has a portfolio of policies with 10% of claims of
type A, 20% of type B, and the remaining claims of type C.
Let X denote the random variable for the size of a claim chosen at ran-
dom from all those on policies in the portfolio.
100) the probahility thata lanaomiy thoeerolaim
(a)Caloulat A
iS greater than 100
(b) Calculate E[X|Type] for types A, B and C.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3a33e85-3ff3-47ee-9b45-f37702402a4e%2F3e35c3fb-a20a-4263-9311-836ecd458247%2Fyozboip_processed.png&w=3840&q=75)
Transcribed Image Text:Consider three types of claims: A, B and C. Let XẠ denote the random
variable for the size of a randomly chosen claim of type A, and let XB
and Xc denote the corresponding random variables for claims of types
B and C, respectively.
Assume that XA, XB and Xc are exponentially distributed with parame-
ters XA = 0.002, AB = 0.001 and Xc = 0.005, respectively.
An insurance company has a portfolio of policies with 10% of claims of
type A, 20% of type B, and the remaining claims of type C.
Let X denote the random variable for the size of a claim chosen at ran-
dom from all those on policies in the portfolio.
100) the probahility thata lanaomiy thoeerolaim
(a)Caloulat A
iS greater than 100
(b) Calculate E[X|Type] for types A, B and C.
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