An insurance company has 1000 policyholders distributed over the three states of the no-claims discount process with

Question:

An insurance company has 1000 policyholders distributed over the three states of the no-claims discount process with transition matrix given by Eq. (10.34). The initial distribution is,

• 100 in State 1

• 600 in State 2

• 300 in State 3

Determine the distribution of policyholders 4 years later. P = 0.1 0.9 0 0.1 0 0.9 0 0.1 0.9 (10.34)

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

Step by Step Answer:

Related Book For book-img-for-question

Introduction To Actuarial And Financial Mathematical Methods

ISBN: 9780128001561

1st Edition

Authors: Stephen Garrett

See More Books

Question Posted: Dec 11, 2023 07:02 AM

See More Questions

Determine whether there is a long-term, stable distribution of the 1000 policyholders in Example 10.37. Example 10.37 An insurance company has 1000 policyholders distributed over the three states of...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Discuss how this improvement project is significant to the role of a nurse leader. This is my SMART+C goal for my project-- SMART+C Project Goal: I have created a dedicated admission team to complete...
A Styrofoam slab has thickness h and density ps. When a swimmer of mass m is resting on it, the slab floats in fresh water with its top at the same level as the water surface. Find the area of the...
(a) Show that if f is the focal length of a thin lens in air, its focal length in water is Where nw is the index of refraction of water and n is that of the lens. (b) Calculate the focal length in...
Look back at the Big Mac Index in Table 20.1. Compute the level of the exchange rate that would be needed to equalize the dollar price of the Big Mac across all countries. State whether each currency...
P18-3 Claims rankings and cash distribution upon liquidation Jun is being liquidated under Chapter 7 of the bankruptcy act. All of Juns assets have been converted into cash, and $400,000 cash is...
1. Use the numbers given to complete the cash budget and short-term financial plan. 2. Rework the cash budget and short-term financial plan assuming Piepkorn changes to a minimum balance of $100,000....
Exercise 11-3 (Algo) Make or Buy Decision (LO11-3] Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for...
Use implicit derivatives to determine an explicit expression for y(x) in the following cases a. Y y + x = 4 b. y = cos(3x + 7y) C. 2/2 +=3y = 2xy d. exy-
Obtain an expression for p (3) 11 in terms of elements of the 1-step transition matrix P for a general Markov process. Interpret this expression.
(Appendix) Labor variances and four-variance overhead analysis; Review of Chapter 7 LO 6 Modem Manufacturing Company estimates the following labor and overhead costs for the period: Required: Use the...
Question 2: Response to John Ripley?
Prepare a summary of the effects of the "fat tax" on the demand and supply diagram. Ensure you talk about the dead weight loss. PRICE D Tax Revenue S P1 P2 TAX P3 Dead Weight Loss QUANTITY QeAT QeBT...
Trade causes production in Home to move from point A to point B. What does this mean happened to the relative price of Qc? QF Home QF1 A QF2 Qc Qc2 Qc2
Write as an ordered pair the coordinates of the point whose y-coordinate is 3 and whose x-coordinate is -7. X Viewing Saved Work Revert to Last Response
1. A cereal manufacturer tests their equipment weekly to be assured that the proper amount of cereal is in each box of cereal. The company wants to see if the amount differs from the stated amount on...
A pinhole camera doesn't have a lens; a small circular hole lets light into the camera, which then exposes the film. For the sharpest image, light from a distant point source makes as small a spot on...
QUESTION 9 HC-O-C-R R-C-O-CH HC-O-P-O-CH-CH-NH3* O || O a. Phosphatidic acid, Serine O b. Lysophosphatidic acid, Serine, Free FA O c. Lysophosphatidylserine, Free FA O d. 2 Free FAs, Serine, Glycerol...
Benzoic acid, 1.35 g, is reacted with oxygen in a constant volume calorimeter to form H 2 O(l) and CO 2 (g) at 298 K. The mass of the water in the inner bath is 1.55 10 3 g. The temperature of the...
Calculate the P and T values for which Br2(g) is in a corresponding state to Xe(g) at 330. K and 72.0 bar.
For each of the following reactions, predict the product and draw the mechanism of its formation. a. b. c. d. e. f. 1) PhMgBr 2) H20 Me 1) NaCN 2) H20 *Me
Create a Data Table to depict the future value when you vary the interest rate and the investment amount. Use the following assumptions: Interest Rates: Investment Amounts:-10.0% $10,000.00 -8.0%...
Isaac earns a base salary of $1250 per month and a graduated commission of 0.4% on the first $100,000 of sales, and 0.5% on sales over $100,000. Last month, Isaac's gross salary was $2025. What were...
Calculate the price, including both GST and PST, that an individual will pay for a car sold for $26,995.00 in Manitoba. (Assume GST = 5% and PST = 8%) a$29,154.60 b$30,234.40 c$30,504.35 d$28,334.75...

An insurance company has 1000 policyholders distributed over the three states of the no-claims discount process with

Question:

P = 0.1 0.9 0 0.1 0 0.9 0 0.1 0.9 (10.34)

Step by Step Answer:

The relevant transition matrix is that obtained in Ex...View the full answer

Introduction To Actuarial And Financial Mathematical Methods

Students also viewed these Sciences questions