An article in Financial Markets Institutions and Instruments [Pricing Reinsurance Contracts on FDIC Losses (2008, Vol. 17(3)]

Question:

An article in Financial Markets Institutions and Instruments [“Pricing Reinsurance Contracts on FDIC Losses” (2008, Vol. 17(3)] modeled average annual losses (in billions of dollars) of the Federal Deposit Insurance Corporation (FDIC) with a Weibull distribution with parameters δ = 1.9317 and β = 0.8472. Determine the following:

(a) Probability of a loss greater than $2 billion

(b) Probability of a loss between $2 and $4 billion

(d) Mean and standard deviation of loss

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...

Fantastic news! We've Found the answer you've been seeking!