Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume an insurer writes n policies. The data in the table below shows historical loss information from a previous year. How much should the insurer
Assume an insurer writes n policies. The data in the table below shows historical loss information from a previous year. How much should the insurer charge each policyholder to be 99.5 percent sure it can meet all its claim obligations at the end of the policy year assuming n=1000? Rework your answer for n=1500, n=2000. Discuss what happens to the premium per policyholder as you adjust n.
Range |
| |
Start | End | Num |
0 | 400 | 12 |
400 | 800 | 45 |
800 | 1200 | 42 |
1200 | 1600 | 37 |
1600 | 2000 | 26 |
2000 | 2400 | 16 |
2400 | 2800 | 8 |
2800 | 3200 | 4 |
3200 | 3600 | 1 |
3600+ |
| 0
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started