An insurance company insures four large risks. The number of losses for each risk is independent and
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An insurance company insures four large risks. The number of losses for each risk is independent and identically distributed on the points {0, 1, 2} with probabilities 0.7, 0.2, and 0.1, respectively. The size of an individual loss has the following cumulative distribution function:
F(x)
Obtaining uniform random numbers as instructed at the beginning of the Problems section, perform a simulation experiment twice of the total loss generated by the four large risks.
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Related Book For
Introduction To Operations Research
ISBN: 9780072321692
7th Edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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