You are given the following information about a group of 10 claims: Claim Size Number of Claims Number of Claims Interval in Interval Censored in Interval (0-15,000] 1 2 (15,000-30,000] 1 (30,000-45,000] 4 Assume that claim sizes and censorship points are uniformly distributed within each interva Estimate, using the life table methodology, the probability that a claim exceeds 30,000. (A) 0.67 (B) 0.70 (C) 0.74 (D) 0.77 (E) 0.80

A First Course in Probability (10th Edition)
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Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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You are given the following information about a group of 10 claims:
Claim Size
Number of Claims
Number of Claims
Interval
in Interval
Censored in Interval
(0-15,000]
1
2
(15,000-30,000]
1
2
(30,000-45,000]
4
Assume that claim sizes and censorship points are uniformly distributed within each interva
Estimate, using the life table methodology, the probability that a claim exceeds 30,000.
(A)
0.67
(B)
0.70
(C)
0.74
(D)
0.77
(E)
0.80
Transcribed Image Text:You are given the following information about a group of 10 claims: Claim Size Number of Claims Number of Claims Interval in Interval Censored in Interval (0-15,000] 1 2 (15,000-30,000] 1 2 (30,000-45,000] 4 Assume that claim sizes and censorship points are uniformly distributed within each interva Estimate, using the life table methodology, the probability that a claim exceeds 30,000. (A) 0.67 (B) 0.70 (C) 0.74 (D) 0.77 (E) 0.80
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