Understandable Statistics: Concepts and Methods
12th Edition
ISBN: 9781337119917
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
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Chapter 5, Problem 18CRP
a.
To determine
Calculate the
b.
To determine
Calculate the probability that at least one of the vehicles with permit will be stolen.
c.
To determine
Calculate the probability that at least two of the vehicles with permit will be stolen.
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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.
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.
From a sample of 26 graduate students, the mean number of months of work experience prior to entering an MBA program was 34.67. The national standard deviation is known to be18 months. What is a 90% confidence interval for the population mean?
Question content area bottom
Part 1
A
9090%
confidence interval for the population mean is
left bracket nothing comma nothing right bracketenter your response here,enter your response here.
(Use ascending order. Round to two decimal places as needed.)
Chapter 5 Solutions
Understandable Statistics: Concepts and Methods
Ch. 5.1 - Statistical Literacy Which of the following are...Ch. 5.1 - Statistical Literacy Which of the following are...Ch. 5.1 - Statistical Literacy Consider each distribution....Ch. 5.1 - Prob. 4PCh. 5.1 - Prob. 5PCh. 5.1 - Statistical Literacy Consider the probability...Ch. 5.1 - Basic Computation: Expected Value and Standard...Ch. 5.1 - Basic Computation: Expected Value For a...Ch. 5.1 - Critical Thinking: Simulation We can use the...Ch. 5.1 - Marketing: Age What is the age distribution of...
Ch. 5.1 - Marketing: Income What is the income distribution...Ch. 5.1 - History: Florence Nightingale What was the age...Ch. 5.1 - Fishing: Trout The following data are based on...Ch. 5.1 - Criminal Justice: Parole USA Today reported that...Ch. 5.1 - Prob. 15PCh. 5.1 - Prob. 16PCh. 5.1 - Expected Value: Life Insurance Jim is a...Ch. 5.1 - Expected Value: Life Insurance Sara is a...Ch. 5.1 - Prob. 19PCh. 5.1 - Prob. 20PCh. 5.1 - Combination of Random Variables: Insurance Risk...Ch. 5.2 - Statistical Literacy What does the random variable...Ch. 5.2 - Prob. 2PCh. 5.2 - Statistical Literacy For a binomial experiment,...Ch. 5.2 - Prob. 4PCh. 5.2 - Interpretation Suppose you are a hospital manager...Ch. 5.2 - Prob. 6PCh. 5.2 - Prob. 7PCh. 5.2 - Prob. 8PCh. 5.2 - Critical Thinking According to the college...Ch. 5.2 - Prob. 10PCh. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - Prob. 17PCh. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - Prob. 22PCh. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - Prob. 26PCh. 5.2 - Binomial Distribution Table: Symmetry Study the...Ch. 5.2 - Prob. 28PCh. 5.2 - Prob. 29PCh. 5.2 - In each of the following problems, the binomial...Ch. 5.2 - Prob. 31PCh. 5.2 - Prob. 32PCh. 5.3 - Statistical Literacy What does the expected value...Ch. 5.3 - Statistical Literacy Consider two binomial...Ch. 5.3 - Basic Computation: Expected Value and Standard...Ch. 5.3 - Basic Computation: Expected Value and Standard...Ch. 5.3 - Critical Thinking Consider a binomial distribution...Ch. 5.3 - Prob. 6PCh. 5.3 - Prob. 7PCh. 5.3 - Prob. 8PCh. 5.3 - Critical Thinking Consider a binomial distribution...Ch. 5.3 - Prob. 10PCh. 5.3 - Sports: Surfing In Hawaii, January is a favorite...Ch. 5.3 - Quality Control: Syringes The quality-control...Ch. 5.3 - Private Investigation: Locating People Old Friends...Ch. 5.3 - Ecology: Hawaiian Tsunamis A tidal wave or tsunami...Ch. 5.3 - Education: Illiteracy USA Today reported that...Ch. 5.3 - Rude Drivers: Tailgating Do you tailgate the car...Ch. 5.3 - Hype: Improved Products The Wall Street Journal...Ch. 5.3 - Prob. 18PCh. 5.3 - Prob. 19PCh. 5.3 - Defense: Radar Stations The probability that a...Ch. 5.3 - Criminal Justice: Jury Duty Have you ever tried to...Ch. 5.3 - Public Safety: 911 Calls The Denver Post reported...Ch. 5.3 - Law Enforcement: Property Crime Does crime pay?...Ch. 5.3 - Prob. 24PCh. 5.3 - Prob. 25PCh. 5.3 - Prob. 26PCh. 5.3 - Prob. 27PCh. 5.3 - Critical Thinking Let r be a binomial random...Ch. 5.4 - Statistical Literacy For a binomial experiment,...Ch. 5.4 - Statistical Literacy When using the Poisson...Ch. 5.4 - Critical Thinking Suppose we have a binomial...Ch. 5.4 - Critical Thinking Suppose we have a binomial...Ch. 5.4 - Prob. 5PCh. 5.4 - Prob. 6PCh. 5.4 - Prob. 7PCh. 5.4 - Prob. 8PCh. 5.4 - College: Core Requirement Susan is taking Western...Ch. 5.4 - Law: Bar Exam Bob is a recent law school graduate...Ch. 5.4 - Sociology: Hawaiians On the leeward side of the...Ch. 5.4 - Prob. 12PCh. 5.4 - Prob. 13PCh. 5.4 - Archaeology: Artifacts At Burnt Mesa Pueblo, in...Ch. 5.4 - Ecology: River Otters In his doctoral thesis, L....Ch. 5.4 - Law Enforcement: Shoplifting The Denver Post...Ch. 5.4 - Prob. 17PCh. 5.4 - Engineering: Cracks Henry Petroski is a professor...Ch. 5.4 - Prob. 19PCh. 5.4 - Earthquakes: San Andreas Fault USA Today reported...Ch. 5.4 - Prob. 21PCh. 5.4 - Prob. 22PCh. 5.4 - Prob. 23PCh. 5.4 - Prob. 24PCh. 5.4 - Prob. 25PCh. 5.4 - Prob. 26PCh. 5.4 - Prob. 27PCh. 5.4 - Prob. 28PCh. 5.4 - Prob. 29PCh. 5.4 - Prob. 30PCh. 5.4 - Prob. 31PCh. 5.4 - Prob. 32PCh. 5.4 - Prob. 33PCh. 5 - Prob. 1CRPCh. 5 - Prob. 2CRPCh. 5 - Prob. 3CRPCh. 5 - Prob. 4CRPCh. 5 - Prob. 5CRPCh. 5 - Prob. 6CRPCh. 5 - Prob. 7CRPCh. 5 - Prob. 8CRPCh. 5 - Prob. 9CRPCh. 5 - Airlines: On-Time Arrivals Consumer Reports rated...Ch. 5 - Prob. 11CRPCh. 5 - Prob. 12CRPCh. 5 - Prob. 13CRPCh. 5 - Prob. 14CRPCh. 5 - Prob. 15CRPCh. 5 - Prob. 16CRPCh. 5 - Prob. 17CRPCh. 5 - Prob. 18CRPCh. 5 - Prob. 19CRPCh. 5 - Prob. 20CRPCh. 5 - Prob. 2DHCh. 5 - Prob. 2LCCh. 5 - Prob. 4LCCh. 5 - Prob. 1UTCh. 5 - Prob. 2UTCh. 5 - Prob. 3UTCh. 5 - Prob. 4UTCh. 5 - Prob. 5UTCh. 5 - Prob. 6UTCh. 5 - Binomial Distributions Although tables of binomial...
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