A difference equation for y n , the amount in the account after n years. If suppose that deposit amount is $650,000 into a bank account paying 5% interest compounded annually and withdraw $50,000 at the each of year.

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Chapter 12.4, Problem 1CYU

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To calculate: A difference equation for yn, the amount in the account after n years. If suppose that deposit amount is $650,000 into a bank account paying 5% interest compounded annually and withdraw $50,000 at the each of year.

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The annual aggregate claim amount of an insurer follows a compound Poisson distribution with parameter 1,000. Individual claim amounts follow a Gamma distribution with shape parameter a = 750 and rate parameter λ = 0.25. 1. Generate 20,000 simulated aggregate claim values for the insurer, using a random number generator seed of 955.Display the first five simulated claim values in your answer script using the R function head(). 2. Plot the empirical density function of the simulated aggregate claim values from Question 1, setting the x-axis range from 2,600,000 to 3,300,000 and the y-axis range from 0 to 0.0000045. 3. Suggest a suitable distribution, including its parameters, that approximates the simulated aggregate claim values from Question 1. 4. Generate 20,000 values from your suggested distribution in Question 3 using a random number generator seed of 955. Use the R function head() to display the first five generated values in your answer script. 5. Plot the empirical density…

Answer choices are: 35 7 -324 4 -9 19494 5 684 3 -17 -3 20 81 15 8 -1 185193