Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
7th Edition
ISBN: 9781337298353
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams
Publisher: South-Western College Pub
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Chapter 6.3, Problem 29E
a)
To determine
To construct: The exponential
b)
To determine
To find: The probability that the arrival time between vehicles is 12 seconds or less.
c)
To determine
To find: The probability that the arrival time between vehicles is 6 seconds or less.
d)
To determine
To find: The probability that the arrival time between vehicles is 30 or more seconds.
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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 6 Solutions
Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
Ch. 6.1 - The random variable x is known to be uniformly...Ch. 6.1 - Delta Airlines quotes a flight time of 2 hours, 5...Ch. 6.1 - Prob. 4ECh. 6.1 - In October 2012, Apple introduced a much smaller...Ch. 6.2 - A random variable is normally distributed with a...Ch. 6.2 - Prob. 12ECh. 6.2 - Prob. 15ECh. 6.2 - Prob. 19ECh. 6.2 - The time needed to complete a final examination in...Ch. 6.2 - New York City is the most expensive city in the...
Ch. 6.3 - Prob. 29ECh. 6.3 - Wendy's restaurant has been recognized for having...Ch. 6 - Prob. 33SECh. 6 - The port of South Louisiana. located along 54...Ch. 6 - Prob. 45SECh. 6 - Specialty Toys Specialty Toys, Inc. sells a...Ch. 6 - Specialty Toys Specialty Toys, Inc. sells a...Ch. 6 - Specialty Toys Specialty Toys, Inc. sells a...Ch. 6 - Gebhardt Electronics Gebhardt Electronics produces...Ch. 6 - Gebhardt Electronics Gebhardt Electronics produces...Ch. 6 - Gebhardt Electronics Gebhardt Electronics produces...
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