Discussion Questions 3. The following is the experience of Insurer B for the last three years: (Continued) d. For each of the three years, calculate the probability that an Texposure unit will file a claim. e. What is the average frequency of losses? f. What is the average severity of the losses? 10/6

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
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Question
Year
123
2.2 Quantification of Uncertainty Via
Probability Models
Discussion Questions
3. The following is the experience of Insurer B for the last three years:
(Continued)
d. For each of the three years, calculate the probability that an
exposure
unit will file a claim.
e. What is the average frequency of losses?
f. What is the average severity of the losses?
g. What is the standard deviation of the losses?
h. Calculate the coefficient of variation.
Number of Exposures
20,000
20,000
20,000
Number of Collision
Claims
975
730
820
Collision Losses ($)
650,000
850,000
900,000
Transcribed Image Text:Year 123 2.2 Quantification of Uncertainty Via Probability Models Discussion Questions 3. The following is the experience of Insurer B for the last three years: (Continued) d. For each of the three years, calculate the probability that an exposure unit will file a claim. e. What is the average frequency of losses? f. What is the average severity of the losses? g. What is the standard deviation of the losses? h. Calculate the coefficient of variation. Number of Exposures 20,000 20,000 20,000 Number of Collision Claims 975 730 820 Collision Losses ($) 650,000 850,000 900,000
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