The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

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Answer 1

Question

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

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6. (a) Let (, F, P) be a probability space. Explain when a subset of ?? is measurable and why. (b) Define a probability measure. (c) Using the probability axioms, show that if AC B, then P(A) < P(B). (d) Show that P(AUB) + P(A) + P(B) in general. Write down and prove the formula for the probability of the union of two sets.

Answer 2

Question

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

Expert Solution & Answer

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Answer 3

Question

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

Expert Solution & Answer

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Answer 4

Question

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

Expert Solution & Answer

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Answer 5

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

Answer 6

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

Answer 7

Chapter 5.1, Problem 28E

(a)

To determine

To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

Answer 8

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

Answer 9

(b)

To determine

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

Answer 10

Expert Solution & Answer

Answer 11

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Answer 12

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Answer 13

Ch. 5.1 - Prob. 1UYK Ch. 5.1 - Prob. 2UYK Ch. 5.1 - Prob. 3UYK Ch. 5.1 - Prob. 4UYK Ch. 5.1 - Prob. 5UYK Ch. 5.1 - Prob. 6UYK Ch. 5.1 - Prob. 7UYK Ch. 5.1 - Prob. 8UYK Ch. 5.1 - Prob. 9E Ch. 5.1 - Prob. 10E

The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

Solution Summary: The author explains that the number of policies sold should be large in number to obtain more accurate results.

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To explain: The reason behind not preferring to sell only 12policies but preferring to sell thousands of policies.

To find: The probability of obtaining an average loss of more than $270 in a year if the company sells the policies for $270.

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Chapter 5 Solutions