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Project Eastcoast Sdn. Bhd. is planning to buy an insurance plan to minimise the risk of losses. The insurance options are as below: Plan North South il. West Project Eastcost Sdn. Bhd. historical losses incurred as below: Month of claim January April Insurance Policy An insurance policy that provides RM5,000 of straight deductible attached to it with an annual policy limit of RM22,000. An insurance policy that provides RM22,000 of aggregate deductible attached to it with a coinsurance of 5 percent. An insurance policy that required 15 percent coinsurance attached to it with no policy limit. May August November December Probability of losses 0.76 0.92 0.37 0.55 0.83 0.44 Amount of Possible Loss (RM) 8,200 6,500 10,500 9,600 1,700 5,800 As a risk management consultant, you are required to advise Project Eastcoast Sdn. Bhd. on the preferable insurance plan. i. Determine the amount retained by Project Eastcoast Sdn. Bhd. and the amount paid by insurer for Plan North, Plan South and Plan West. Based on (i), explain the preferable insurance policy from Project Eastcoast Sdn. Bhd. perspective.

Project Eastcoast Sdn. Bhd. is planning to buy an insurance plan to minimise the risk of losses. The insurance options are as below: Plan North South il. West Project Eastcost Sdn. Bhd. historical losses incurred as below: Month of claim January April Insurance Policy An insurance policy that provides RM5,000 of straight deductible attached to it with an annual policy limit of RM22,000. An insurance policy that provides RM22,000 of aggregate deductible attached to it with a coinsurance of 5 percent. An insurance policy that required 15 percent coinsurance attached to it with no policy limit. May August November December Probability of losses 0.76 0.92 0.37 0.55 0.83 0.44 Amount of Possible Loss (RM) 8,200 6,500 10,500 9,600 1,700 5,800 As a risk management consultant, you are required to advise Project Eastcoast Sdn. Bhd. on the preferable insurance plan. i. Determine the amount retained by Project Eastcoast Sdn. Bhd. and the amount paid by insurer for Plan North, Plan South and Plan West. Based on (i), explain the preferable insurance policy from Project Eastcoast Sdn. Bhd. perspective.

MATLAB: An Introduction with Applications
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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1. Project Eastcoast Sdn. Bhd. is planning to buy an insurance plan to minimise the risk of losses. The insurance options are as below: Plan North i. South ii. West Project Eastcost Sdn. Bhd. historical losses incurred as below: Insurance Policy An insurance policy that provides RM5,000 of straight deductible attached to it with an annual policy limit of RM22,000. An insurance policy that provides RM22,000 of aggregate deductible attached to it with a coinsurance of 5 percent. Month of claim January April May August November December An insurance policy that required 15 percent coinsurance attached to it with no policy limit. Probability of losses 0.76 0.92 0.37 0.55 0.83 0.44 As a risk management consultant, you are required to advise Project Eastcoast Sdn. Bhd. on the preferable insurance plan. Amount of Possible Loss (RM) 8,200 6,500 10,500 9,600 1,700 5,800 Determine the amount retained by Project Eastcoast Sdn. Bhd. and the amount paid by insurer for Plan North, Plan South and Plan West. Based on (i), explain the preferable insurance policy from Project Eastcoast Sdn. Bhd. perspective.
Transcribed Image Text:1. Project Eastcoast Sdn. Bhd. is planning to buy an insurance plan to minimise the risk of losses. The insurance options are as below: Plan North i. South ii. West Project Eastcost Sdn. Bhd. historical losses incurred as below: Insurance Policy An insurance policy that provides RM5,000 of straight deductible attached to it with an annual policy limit of RM22,000. An insurance policy that provides RM22,000 of aggregate deductible attached to it with a coinsurance of 5 percent. Month of claim January April May August November December An insurance policy that required 15 percent coinsurance attached to it with no policy limit. Probability of losses 0.76 0.92 0.37 0.55 0.83 0.44 As a risk management consultant, you are required to advise Project Eastcoast Sdn. Bhd. on the preferable insurance plan. Amount of Possible Loss (RM) 8,200 6,500 10,500 9,600 1,700 5,800 Determine the amount retained by Project Eastcoast Sdn. Bhd. and the amount paid by insurer for Plan North, Plan South and Plan West. Based on (i), explain the preferable insurance policy from Project Eastcoast Sdn. Bhd. perspective.
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