5. (6 points) - An insurance company determined that the discrete probability distribution for damage claims paid as a result of hurricanes Ivan in South Carolina and Jack in Florida: Hurricane Ivan in South Carolina: a: a. (2 points) - This insurance company wants you to calculate the expected value for damage claim for each hurricane based on the Discrete Probability Distribution method presented in topic 4.5. b. (2 points) - The insurance company wants you to continue to apply the Discrete Probability Distribution method and calculate the variance and standard deviation for the damage claim observed for each hurricane. c. ( 1 point ) - Discuss the results obtained in topics (a) and (b). d. (1 point) - If you would be the General Manager at this Insurance Company, and based on your learnings so far in this course, but specifically in chapter 4 topic 4.5, how would you use this approach to determine the premium you need to charge your customers in areas of the country subjected to hurricanes and still make profit in your business? 6. Extra ( 2 points) - Assuming that the return for a stock fund is normally distributed with a mean of 15.5% and standard deviation of 2.55%, calculate: a) (1 point) - Complete the table below by calculating the probability that the stock fund has a return equal or less than each \% return value presented on the following table: b) (1 point) - Complete the table below by calculating the probability that the stock fund has a return of at least each \% return value presented on the following table: 5. (6 points) - An insurance company determined that the discrete probability distribution for damage claims paid as a result of hurricanes Ivan in South Carolina and Jack in Florida: Hurricane Ivan in South Carolina: a: a. (2 points) - This insurance company wants you to calculate the expected value for damage claim for each hurricane based on the Discrete Probability Distribution method presented in topic 4.5. b. (2 points) - The insurance company wants you to continue to apply the Discrete Probability Distribution method and calculate the variance and standard deviation for the damage claim observed for each hurricane. c. ( 1 point ) - Discuss the results obtained in topics (a) and (b). d. (1 point) - If you would be the General Manager at this Insurance Company, and based on your learnings so far in this course, but specifically in chapter 4 topic 4.5, how would you use this approach to determine the premium you need to charge your customers in areas of the country subjected to hurricanes and still make profit in your business? 6. Extra ( 2 points) - Assuming that the return for a stock fund is normally distributed with a mean of 15.5% and standard deviation of 2.55%, calculate: a) (1 point) - Complete the table below by calculating the probability that the stock fund has a return equal or less than each \% return value presented on the following table: b) (1 point) - Complete the table below by calculating the probability that the stock fund has a return of at least each \% return value presented on the following table
