Homework Help is Here – Start Your Trial Now!
Math
Probability
Consider three types of claims: A, B and C. Let XẠ denote the rand variable for the size of a randomly chosen claim of type A, and let and Xc denote the corresponding random variables for claims of ty B and C, respectively. Assume that XA, XB and Xc are exponentially distributed with parar ters A = 0.002, XB = 0.001 and Xc = 0.005, respectively.

Consider three types of claims: A, B and C. Let XẠ denote the rand variable for the size of a randomly chosen claim of type A, and let and Xc denote the corresponding random variables for claims of ty B and C, respectively. Assume that XA, XB and Xc are exponentially distributed with parar ters A = 0.002, XB = 0.001 and Xc = 0.005, respectively.

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
See similar textbooks
icon
Related questions
Question

Probability.

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 lA = 0.002, \B = 0.001 and Ac = 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. (a) Calculate Pr(X > 100), the probability that a randomly chosen claim is greater than 100.
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 lA = 0.002, \B = 0.001 and Ac = 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. (a) Calculate Pr(X > 100), the probability that a randomly chosen claim is greater than 100.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON
SEE MORE TEXTBOOKS