Ground-up losses follow a uniform distribution on (0, 800].Consider the following two reinsurance treaties:Treaty A: In a surplus share reinsurance treaty, the reinsurer pays 50% of each loss exceeding 400 in the layer of(400, 600], and 80% of each loss exceeding 600 in the layer of (600, 800] to the primary insurer.Treaty B: In a quota share reinsurance treaty, the reinsurer pays 100R% of each loss to the primary insurer.The expected total amounts shared by the reinsurer based on the two reinsurance treaties are the same. Determine R.Possible AnswersABсDELess than 5%At least 5%, but less than 8%At least 8%, but less than 11%At least 11%, but less than 13%At least 13%

Let X be the random variable representing the ground-up losses. We know that X follows a uniform…

Answered: Ground-up losses follow a uniform…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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