Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Based on the survey results given to 2184 insurance companies, collision insurance paid is as follows: Payment ($) Number of Insurance Companies 0 5 500

Based on the survey results given to 2184 insurance companies, collision insurance paid is as follows:
Payment ($) Number of Insurance Companies
0 5
500 45
1000 350
3000 681 a) Develop a probability distribution for the payment.
5000 753 b) Use the expected collision payment to determine the collision insurance premium
8000 205 that would enable the company to break even.
10000 145 c) Compute the variance of payment.

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_2

Step: 3

blur-text-image_3

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

Mathematics for Economics and Business

Authors: Ian Jacques

9th edition

129219166X, 9781292191706 , 978-1292191669

More Books

Students also viewed these Mathematics questions

Question

What is the wavelength of light if its frequency is 1.009 106 Hz?

Answered: 1 week ago

Question

How many applicants are you interviewing?

Answered: 1 week ago