Consider three types of claims: A, B and C. Let XA 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 l4 = 0.002, AB = 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. 100) the prohahility thet a landomiy choeerolam (a)Calculate P is groater than 100 (b) Calculate E[X|Type] for types A, B and C.
Consider three types of claims: A, B and C. Let XA 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 l4 = 0.002, AB = 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. 100) the prohahility thet a landomiy choeerolam (a)Calculate P is groater than 100 (b) Calculate E[X|Type] for types A, B and C.
A First Course in Probability (10th Edition)
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![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%2F8ca7e045-c904-43ed-9cc4-af63b8f1c626%2Fea528d12-c45a-43bf-b67c-898256f103f2%2F2wqt048_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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