Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

= 3) (25) Suppose an insurance firm has three groups of insured people who have claim distriburn of the form: 3000 of claims follow a

image text in transcribed

= 3) (25) Suppose an insurance firm has three groups of insured people who have claim distriburn of the form: 3000 of claims follow a N (u = 110, ,02 = 100) distribution , 2500 of claims folow a N (u = 120, ,02 200) distributions and 4500. of claims folow a N (u = 130, o2 = 300) How much should the company reserve in order to meet all claims with 9R% confidence level i) in a year ii) in 3 months iii) in a month iv) in 2 week time. Covariance matrices read as S = [100 20 30 20 200 -10 30 -10 300 = 3) (25) Suppose an insurance firm has three groups of insured people who have claim distriburn of the form: 3000 of claims follow a N (u = 110, ,02 = 100) distribution , 2500 of claims folow a N (u = 120, ,02 200) distributions and 4500. of claims folow a N (u = 130, o2 = 300) How much should the company reserve in order to meet all claims with 9R% confidence level i) in a year ii) in 3 months iii) in a month iv) in 2 week time. Covariance matrices read as S = [100 20 30 20 200 -10 30 -10 300

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wealth Habits Six Ordinary Steps To Achieve Extraordinary Financial Freedom

Authors: Candy Valentino

1st Edition

1394152299, 978-1394152292

More Books

Students also viewed these Finance questions