Let us consider a portfolio of homeowners and automobile insurance policies. There are 1000 homeowner's policies sold, and 2000 auto policies sold by an insurer. The data on each risk and correlations is as follows: Auto policies: Mean loss = $500, Standard deviation of losses = $700, correlation among auto risks = 0.1 Homeowners' (HO) policies: Mean loss = $300, Standard deviation of losses $400, correlation among auto risks = 0.2 = The cross correlations between the Auto and HO policy = 0.005. What is the mean loss on the entire pool of auto and HO combined (portfolio) together? What is the standard deviation of the mean loss per policy?
Let us consider a portfolio of homeowners and automobile insurance policies. There are 1000 homeowner's policies sold, and 2000 auto policies sold by an insurer. The data on each risk and correlations is as follows: Auto policies: Mean loss = $500, Standard deviation of losses = $700, correlation among auto risks = 0.1 Homeowners' (HO) policies: Mean loss = $300, Standard deviation of losses $400, correlation among auto risks = 0.2 = The cross correlations between the Auto and HO policy = 0.005. What is the mean loss on the entire pool of auto and HO combined (portfolio) together? What is the standard deviation of the mean loss per policy?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
J2.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman