An Introduction to Mathematical Statistics and Its Applications (6th Edition)
6th Edition
ISBN: 9780134114217
Author: Richard J. Larsen, Morris L. Marx
Publisher: PEARSON
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Chapter 4.3, Problem 6Q
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To find:
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PEER REPLY 1:
Choose a classmate's Main Post and review their decision making process.
1. Choose a risk level for each of the states of nature (assign a probability
value to each).
2. Explain why each risk level is chosen.
3. Which alternative do you believe would be the best based on the maximum
EMV?
4. Do you feel determining the expected value with perfect information
(EVWPI) is worthwhile in this situation? Why or why not?
Questions
An insurance company's cumulative incurred claims for the last 5 accident years are given
in the following table:
Development Year
Accident Year 0
2018
1 2 3 4
245 267 274 289 292
2019
255 276 288 294
2020
265 283 292
2021
263 278
2022
271
It can be assumed that claims are fully run off after 4 years. The premiums received for
each year are:
Accident Year Premium
2018
306
2019
312
2020
318
2021
326
2022
330
You do not need to make any allowance for inflation.
1. (a) Calculate the reserve at the end of 2022 using the basic chain ladder method.
(b) Calculate the reserve at the end of 2022 using the Bornhuetter-Ferguson method.
2. Comment on the differences in the reserves produced by the methods in Part 1.
You are provided with data that includes all 50 states of the United States. Your task is to draw a sample of: o 20 States using Random Sampling (2 points: 1 for random number generation; 1 for random sample) o 10 States using Systematic Sampling (4 points: 1 for random numbers generation; 1 for random sample different from the previous answer; 1 for correct K value calculation table; 1 for correct sample drawn by using systematic sampling) (For systematic sampling, do not use the original data directly. Instead, first randomize the data, and then use the randomized dataset to draw your sample. Furthermore, do not use the random list previously generated, instead, generate a new random sample for this part. For more details, please see the snapshot provided at the end.) Upload a Microsoft Excel file with two separate sheets. One sheet provides random sampling while the other provides systematic sampling. Excel snapshots that can help you in organizing columns are provided on the next…
Chapter 4 Solutions
An Introduction to Mathematical Statistics and Its Applications (6th Edition)
Ch. 4.2 - If a typist averages one misspelling in every 3250...Ch. 4.2 - A medical study recently documented that 905...Ch. 4.2 - Five hundred people are attending the first annual...Ch. 4.2 - A chromosome mutation linked with colorblindness...Ch. 4.2 - Suppose that 1% of all items in a supermarket are...Ch. 4.2 - A newly formed life insurance company has...Ch. 4.2 - According to an airline industry report (189),...Ch. 4.2 - Electromagnetic fields generated by power...Ch. 4.2 - Astronomers estimate that as many as one hundred...Ch. 4.2 - During the latter part of the nineteenth century,...
Ch. 4.2 - A random sample of three hundred fifty-six seniors...Ch. 4.2 - Midwestern Skies books ten commuter flights each...Ch. 4.2 - Prob. 13QCh. 4.2 - Prob. 14QCh. 4.2 - Prob. 15QCh. 4.2 - A tool and die press that stamps out cams used in...Ch. 4.2 - In a new fiber-optic communication system,...Ch. 4.2 - Assume that the number of hits, X, that a...Ch. 4.2 - Prob. 19QCh. 4.2 - Suppose a radioactive source is metered for two...Ch. 4.2 - Suppose that on-the-job injuries in a textile mill...Ch. 4.2 - Find P(X=4) if the random variable X has a Poisson...Ch. 4.2 - Prob. 23QCh. 4.2 - Prob. 24QCh. 4.2 - Prob. 25QCh. 4.2 - Prob. 26QCh. 4.2 - Records show that deaths occur at the rate of 0.1...Ch. 4.2 - Fifty spotlights have just been installed in an...Ch. 4.2 - Prob. 29QCh. 4.3 - Use Appendix Table A.1 to evaluate the following...Ch. 4.3 - Let Z be a standard normal random variable. Use...Ch. 4.3 - (a) Let 0ab. Which number is larger?...Ch. 4.3 - Prob. 4QCh. 4.3 - Assume that the random variable Z is described by...Ch. 4.3 - Prob. 6QCh. 4.3 - Prob. 7QCh. 4.3 - Hertz Brothers, a small, family-owned radio...Ch. 4.3 - Prob. 9QCh. 4.3 - State Techs basketball team, the Fighting...Ch. 4.3 - A random sample of 747 obituaries published...Ch. 4.3 - Prob. 12QCh. 4.3 - If pX(k)=(10k)(0.7)k(0.3)10k,k=0,1,10, is it...Ch. 4.3 - A sell-out crowd of 42,200 is expected at...Ch. 4.3 - A fair coin is tossed two hundred times. Let Xi=1...Ch. 4.3 - Suppose that one hundred fair dice are tossed....Ch. 4.3 - Let X be the amount won or lost in betting $5 on...Ch. 4.3 - Prob. 18QCh. 4.3 - An electronics firm receives, on the average,...Ch. 4.3 - Prob. 20QCh. 4.3 - Econo-Tire is planning an advertising campaign for...Ch. 4.3 - A large computer chip manufacturing plant under...Ch. 4.3 - Prob. 23QCh. 4.3 - Prob. 24QCh. 4.3 - A criminologist has developed a questionnaire for...Ch. 4.3 - The cross-sectional area of plastic tubing for use...Ch. 4.3 - At State University, the average score of the...Ch. 4.3 - A college professor teaches Chemistry 101 each...Ch. 4.3 - Suppose the random variable Y can be described by...Ch. 4.3 - It is estimated that 80% of all eighteen-year-old...Ch. 4.3 - Prob. 31QCh. 4.3 - Prob. 32QCh. 4.3 - The IQs of nine randomly selected people are...Ch. 4.3 - Let Y1,Y2,...,Yn be a random sample from a normal...Ch. 4.3 - A circuit contains three resistors wired in...Ch. 4.3 - Prob. 36QCh. 4.3 - Use moment-generating functions to prove the two...Ch. 4.3 - Let Y1,Y2,...,Y9 be a random sample of size 9 from...Ch. 4.3 - Prob. 39QCh. 4.4 - Because of her past convictions for mail fraud and...Ch. 4.4 - A teenager is trying to get a drivers license....Ch. 4.4 - Prob. 3QCh. 4.4 - Recently married, a young couple plans to continue...Ch. 4.4 - Show that the cdf for a geometric random variable...Ch. 4.4 - Suppose three fair dice are tossed repeatedly. Let...Ch. 4.4 - Prob. 7QCh. 4.4 - Sometimes the geometric random variable is defined...Ch. 4.4 - Prob. 9QCh. 4.4 - Suppose that the random variables X1 and X2 have...Ch. 4.5 - A door-to-door encyclopedia salesperson is...Ch. 4.5 - An underground military installation is fortified...Ch. 4.5 - Darryls statistics homework last night was to flip...Ch. 4.5 - When a machine is improperly adjusted, it has...Ch. 4.5 - For a negative binomial random variable whose pdf...Ch. 4.5 - Let the random variable X denote the number of...Ch. 4.5 - Calculate the mean, variance, and...Ch. 4.5 - Let X1,X2, and X3 be three independent negative...Ch. 4.5 - Differentiate the moment-generating function...Ch. 4.5 - Suppose that X1,X2,...,Xk are independent negative...Ch. 4.6 - An Arctic weather station has three electronic...Ch. 4.6 - A service contact on a new university computer...Ch. 4.6 - Suppose a set of measurements Y1,Y2,...,Y100 is...Ch. 4.6 - Demonstrate that plays the role of a scale...Ch. 4.6 - Show that a gamma pdf has the unique mode r1; that...Ch. 4.6 - Prove that (12)=. (Hint: Consider E(Z2)), where Z...Ch. 4.6 - Show that (72)=158.Ch. 4.6 - If the random variable Y has the gamma pdf with...Ch. 4.6 - Differentiate the gamma moment-generating function...Ch. 4.6 - Prob. 10Q
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- The following relates to Problems 4 and 5. Christchurch, New Zealand experienced a major earthquake on February 22, 2011. It destroyed 100,000 homes. Data were collected on a sample of 300 damaged homes. These data are saved in the file called CIEG315 Homework 4 data.xlsx, which is available on Canvas under Files. A subset of the data is shown in the accompanying table. Two of the variables are qualitative in nature: Wall construction and roof construction. Two of the variables are quantitative: (1) Peak ground acceleration (PGA), a measure of the intensity of ground shaking that the home experienced in the earthquake (in units of acceleration of gravity, g); (2) Damage, which indicates the amount of damage experienced in the earthquake in New Zealand dollars; and (3) Building value, the pre-earthquake value of the home in New Zealand dollars. PGA (g) Damage (NZ$) Building Value (NZ$) Wall Construction Roof Construction Property ID 1 0.645 2 0.101 141,416 2,826 253,000 B 305,000 B T 3…arrow_forwardRose Par posted Apr 5, 2025 9:01 PM Subscribe To: Store Owner From: Rose Par, Manager Subject: Decision About Selling Custom Flower Bouquets Date: April 5, 2025 Our shop, which prides itself on selling handmade gifts and cultural items, has recently received inquiries from customers about the availability of fresh flower bouquets for special occasions. This has prompted me to consider whether we should introduce custom flower bouquets in our shop. We need to decide whether to start offering this new product. There are three options: provide a complete selection of custom bouquets for events like birthdays and anniversaries, start small with just a few ready-made flower arrangements, or do not add flowers. There are also three possible outcomes. First, we might see high demand, and the bouquets could sell quickly. Second, we might have medium demand, with a few sold each week. Third, there might be low demand, and the flowers may not sell well, possibly going to waste. These outcomes…arrow_forwardConsider the state space model X₁ = §Xt−1 + Wt, Yt = AX+Vt, where Xt Є R4 and Y E R². Suppose we know the covariance matrices for Wt and Vt. How many unknown parameters are there in the model?arrow_forward
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