FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A health insurance pool has 1,000 customers and each customer has a 40% chance of filing claim of $250, 25% chance of filing claim of

image text in transcribed

A health insurance pool has 1,000 customers and each customer has a 40% chance of filing claim of $250, 25% chance of filing claim of $500 and 20% chance of $1,000. Assume customers are independent of each other. What is the Company standard deviation of claim for each customer, round to 2 decimal places

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

Real Estate Finance

Real Estate Finance

Authors: John P. Wiedemer, ‎ Keith J. Baker

9th edition

324181426, 324181425, 978-0324181425

More Books

Students also viewed these Finance questions

Question

★★★★★
Interest Rate Swap: Journal Entries and Valuation Johnson & Johnson (J&J) has $10,000,000 of floating rate debt, with interest at LIBOR + 120 bp adjusted quarterly, and an equivalent amount of 2-year...

Answered: 1 week ago

Question

★★★★★
All of the following are examples of data analytics techniques used to predict future events EXCEPT a . advanced robotics. b . neural networks. c . artificial intelligence. d . machine learning.

Answered: 1 week ago

Question

★★★★★
When markets are not understood, small companies will fail to establish a position in their target market and not take off and grow. This could be due, perhaps, to attention being concentrated on...

Answered: 1 week ago

Question

★★★★★
On June 30, Holloway Corporation discontinued its operations in Europe. During the year, the operating loss was $300,000 before taxes. On September 1, Holloway disposed of its European facilities at...

Answered: 1 week ago

Question

★★★★★
A health insurance pool has 1,000 customers and each customer has a 40% chance of filing claim of $250, 25% chance of filing claim of $500 and 20% chance of $1,000. Assume customers are independent...

Answered: 1 week ago

Question

★★★★★
Exercise 3.1 Let X be a real inner product space with inner product (, .) and as- sociated norm || . ||. Prove the Parallelogram Law: If x and y are elements of X, then 1x + yll2 + 1/x - x 112 = 2...

Answered: 1 week ago

Question

★★★★★
The checksheet below shows the frequency of below average results from patient experience surveys for MRI scans from the 2020-2022 time period. Federal Medicare & Medicaid mandates require that...

Answered: 1 week ago

Question

★★★★★
Based on the 2-by-2 contingency table to determine the total number of people who fail the diagnostic test, which represents the target market for hearing aid sales from Assignment 2 and the...

Answered: 1 week ago

Question

★★★★★
Q5 (Ref: Q.17-15, p718 of textbook): A company builds custom equipment. It has landed a contract with a major customer. Relevant data are shown below. The complication is that the delivery has been...

Answered: 1 week ago

Question

★★★★★
MAKE AN EXCEL SHEET Make a Frequency Distribution with 5 classes, also list the midpoints, relative frequency, and cumulative relative frequency Make a relative frequency ogive Dont forget...

Answered: 1 week ago

Question

★★★★★
The table below presents quarterly sales of shampoo, given in liters, over a three years period. Year Quarter Sales Forecast 1 Q1 266 1 Q2 143 1 Q3 183 1 Q4 119 2 Q1 194 2 Q2 161 2 Q3 175 2 Q4 140 3...

Answered: 1 week ago

Previous Question Next Question