The claim payments on a sample of ten policies are: 2 3 3 5 5* 6 7 7* 9 10* + indicates that the loss exceeded the policy limit Using the Product-Limit estimator, calculate the probability that the loss on a policy еxceeds 8. (A) 0.20 (В) 0.25 (C) 0.30 (D) 0.36 (E) 0.40
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- a). Your company is considering submitting a bid on a major project. You determine that the expected completion time for the project is 100 days, and that the standard deviation of the expected completion time is 8 days. (It is assumed that the normal distribution applies here.) You wish to set the project completion date in your bid such that there is an 80% chance that you will be able to complete the project by the date you have set. What due date should you set? (Note: fractional dates are allowed.) b.) What is the probability that the project described above is done within 90 days?An important factor un solid missile fuel is the particle size distribution. Significant problems occur if the particle sizes are too large. From production data in the past, it has been determined that the particle size( in micrometers) distribution is characterized byThe lowest portfolio risk will result when the asset returns are perfectly positively correlated. Select one: True False
- Determine the heteroscedasticity in a scatter plot?28 - Average deviation of the following classified sales series (units)calculate. A) 2.34 B) 2.76 C) 1,3 D) 4.4 E) 3.88Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.6 percent and the standard deviation was 16.5 percent. a. What is the probability that your return on this asset will be less than -8.5 percent in a given year? Use the NORMDIST function in Excel® to answer this question. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What range of returns would you expect to see 95 percent of the time? Note: Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. c. What range of returns would you expect to see 99 percent of the time? Note: Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and…
- Jack invests in a mutual fund with annual returns that follow a Normal model with mean 14% and standard deviation 9%. What is the probability Jack obtains an annual return greater than 25%?The quarterly returns for a group of 67 mutual funds with a mean of 1.1% and a standard deviation of 5.9% can be modeled by a Normal model. From these funds, find the cutoff return value(s) that would separate the a) highest 30%. b) lowest 40%. c) middle 60%. d) highest 60%. Question content area bottom Part 1 a) Select the correct choice and fill in any answer boxes in your choice below. (Round to two decimal places as needed.) A. enter your response here%less than<xless than<enter your response here% B. xless than<enter your response here% C. xgreater than>enter your response here%The ground-up losses have an exponential distribution with mean 750,000. A deductible of 500,000 is applied to the product and the frequency distribution for the total number of losses, , is Poisson with mean 2. What is the percentage of policyholders be expected to have at least one claim paid to them?
- A book seller has the following schedule of weekly. demand for the book "Elementary Quantitative Methods" No. of copies on demand : Probability : 100 200 300 400 500 .02 .05 .09 .12 .20 .15 Find the expected number of copies demanded per week.On average, there is one hurricane in the Bahamas every year. The cost torepair the damage of each hurricane in the Bahamas to a particular resort is 100. To stabilizefinances, the resort buys hurricane insurance, which will cover the cost of the repairs foreach hurricane after the second. Assume that the number of hurricanes in the Bahamas ina given year is Poisson distributed. 1. What is the expected cost of repairs in a given year to the resort (not including thecost of insurance)?2. What is the expected payout of the insurance company on the resort’s policy in agiven year?3(ii) A bank sets up a Special Purpose Vehicle (SPV) for a CDO issue. The SPV wants to understand the risks that they may face, so they run simulations of the annual cash flows out of their portfolio. Selected results of the simulation are shown in the table below. Annual Portfolio Cash Flows Mean Std. Dev. Min. 5th 10th Percentiles 15th 85th 90th (1,172) 16,651 (7,760) (6,800) (4,880) (3,920) 2,480 95th Max. 14,320 15,280 26,400 The SPV wants to hold risk capital to cover its losses to the 95th percentile, and expected CDO payouts for the next five years add up to $100m. How much capital would you advise them to hold, and why?