(i)Annual claim frequency for an individual policyholder has mean 1 and variance o².(ii)The prior distribution for 2 is uniform on the interval [0.5, 1.5].(iii)The prior distribution for o? is exponential with mean 1.25.A policyholder is selected at random and observed to have no claims in Year 1.Using Bühlmann credibility, estimate the number of claims in Year 2 for the selectedpolicyholder.(A)0.56(В)0.65(C)0.71(D)0.83(E)0.94

Answered: Image /qna-images/answer/b26e6853-eb4d-4564-9d15-ec9515a4c9fa.jpg

Answered: (i) Annual claim frequency for an…

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

Similar questions

. Suppose that at a large university, 40% of the males and 50% of the females voted in the last U.S. presidential election. José plans to take a random sample of 100 of the males and compute the sample proportion who voted. Independently, Anya plans to take a random sample of 150 of the females and compute the sample proportion who voted. What is the standard deviation of the distribution of all possible differences in the sample proportions José and Anya could obtain? 45 (A) √250 0.45(0.55) 250 402 502 100 150 0.40(0.60) 0.50(0.50) + 100 150 0.40(0.60) 0.50(0.50) (E) 100 150
An accountant believes that the percentage of accounts that will be uncollectible increases as the ages of the accounts increase. Here the age of an unpaid account is the number of days elapsed since the invoice date. To test this theory, the accountant randomly selects independent samples of 500 accounts with ages between 31 & 60 days and 500 accounts with ages between 61 & 90 days from the accounts receivable ledger dated one year ago. When the sampled accounts are examined, it is found that 10 of the 500 accounts with ages between 31 & 60 days were eventually classified as "uncollectible", while 27 of the 500 accounts with ages between 61 & 90 days were eventually classified as "uncollectible". Let pi = proportion of accounts with ages between 31 & 60 days and p2 = proportion of accounts with ages between 61 & 90 days.
The diameter of a cylinder follows a normal distribution with the mean of 10cm and the variance of 0.04 cm². (a) Construct a Shewhart chart to monitor the process mean of cylinder diameter with a sample size 4? (Use L=3) (b) If the mean of the process changes to 10.5 cm, what is the probability that you detect this mean shift at the immediate next sample (the first sample after the mean shift)? (c) Continue b), what is the probability of detecting this mean shift before plotting the 5th sample after the mean shift?
Which statement is not correct?A. Spurious correlation can often be reduced by expressing X and Y in per capita terms.B. Autocorrelation is mainly a concern if we are using time - series data.C. Heteroscedastic residuals will have roughly the same variance for any value of X.D. Standardized residuals make it easy to identify outliers or instances of poor fit. ( don't hand writing solution)
The week before the bill to repeal Obamacare came up for consideration in the Senate, one polling agency increased the size of the random sample of U.S. adults they surveyed on this issue from 500 to 1500. What effect would this increase have on the polling agency's estimate of the proportion of U.S. adults in favor of repealing Obamacare, assuming the true proportion in favor remained constant? (A) A reduction in the variability of the estimate (B) An increase in the variability of the estimate (C) A reduction in the bias of the estimate (D) An increase in the bias of the estimate (E) A reduction in both the variability and the bias of the estimate
Q1. Using 625 trading days of data, you estimated the daily log return follows a normal distribution with a mean of 5 bps and and a stdev of 125 bps. Q1b. what is the 90, 95, and 99% confidence interval for your mean return estimate?
2) In the year 2033, Kayla Faruq is leading emergency room doctor. Kayla is presently researching the relationship between stress and cardiovascular disease. Suppose systolic blood pressures of patients that are experiencing chronic stress is normally distributed with a mean of 140 and a standard deviation of 5.9. a) In a random sample of 16 chronically stressed patients, what is the probability the sample mean is less than 132? Would you classify this observation as an outlier? Why or why not? b) What is the probability a randomly selected chronically stressed patient has a systolic blood pressure less than 132? Would you classify this observation as an outlier? Why or why not? ||
. A polling agency wants to estimate the percentage of voters in favor of repealing and replacing the Affordable Care Act, and it wants to provide a margin of error of no more than 1.8 percentage points with 99% confidence. Which of the following should be used to determine the number of respondents (n) the agency must poll? (A) It cannot be determined from the given information. (0.5)(0.5) n (0.5)(0.5) <0.018 (B) 1.96 (C) 2.576 <0.018 n (0.5)(0.5) (D) 2.576 <0.036 n (E) 2.576, (0.99 (0.01) 11 <0.018
How do I tell if I have a one-sample t-test or an indepenent-samples t-test in the following situation? I have a group that has received a financial benefit and were chosen to rate their happiness after receiving that benefit. However, all members, those in the sample and those in the total group received the same beneifit. Do I have two groups and need an independent samples t-test or do I have one group measured against the mean?
Suppose Jack and Diane are each attempting to use a simulation to describe the sampling distribution from a population that is skewed right with mean 60 and standard deviation 5. Jack obtains 1000 random samples of size n=5 from the population, finds the mean of the means, and determines the standard deviation of the means. Diane does the same simulation, but obtains 1000 random samples of size n=30 from the population What do you expect the mean of Jack's distribution to be? What do you expect the mean of Diane's distribution to be?
Assume that the following satisfaction scores of three companies for the 4th quarter of 2010 and 2011 were obtained from the Rochester's Customer Satisfaction Index. Assume that the scores are based on a poll of 100 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 7 points in each case. (The scores on the following table are hypothetical values for the exam only) Company Costco BJ's Sam's 2010 Score 73 Ha: μ 1-μ 2 > 0 Ho: μ 1-μ 2 > 0 Ho: u 1-μ2=0 none of the above- Ha: μ 1-μ 2 <0 75 77 2011 Score 75 77 79 Professor Pan is interested in knowing whether the difference in the satisfaction score for Costco from 2010 to 2011 is statistically significant. assume a=5%, Professor Pan came up with the following hypotheses. Which of the following null or alternative hypotheses is correct?
Directions: Solve the given problem. Show your solutions. Of all the registered automobiles in Colorado, 8% fail the state emissions test. Twelve automobiles are elected at random to undergo an emissions test. a. Find the probability that exactly four of them fail the test. b. Find the probability that fewer than four of them fail the test. c. Find the probability that more than three of them fail the test.

SEE MORE QUESTIONS

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS