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

Question

1 Approved Answer

Consider an aggregate claims process that is a compound Poisson process with premium loading factor 0 = 0.10. The claim size distribution is gamma (2,

image text in transcribed
Consider an aggregate claims process that is a compound Poisson process with premium loading factor 0 = 0.10. The claim size distribution is gamma (2, 0.2) . (i) Calculate the adjustment coefficient R accurate to three signifi- cant digits. [7 Marks (ii) If the initial surplus is U = 1000 what can you say about (U)

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

Finite Mathematics

Finite Mathematics

Authors: Stefan Waner, Steven Costenoble

6th Edition

ISBN: 1285415604, 9781285415604

More Books

Students also viewed these Mathematics questions

Question

★★★★★
Table 12-7 gives data on the results of spraying rotenone of different concentrations on the chrysanthemum aphis in ~50 batches. Develop a suitable model to express the probability of death as a...

Answered: 1 week ago

Question

★★★★★
Many organizations have been recently forced to "re-build" in order to survive. Give a brief assessment of your thoughts on this organization's hurdle and action plan to "re-build" for success....

Answered: 1 week ago

Question

★★★★★
United Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2008, the company incurred $344,000 of costs to produce 40,000 gallons of the chemical....

Answered: 1 week ago

Question

★★★★★
Refer to the Crystal Springs Filtration Department Data Set. 1. Compute the May conversion costs in the Filtration Department. 2. If the Filtration Department completely processed 205,000 liters,...

Answered: 1 week ago

Question

★★★★★
Consider an aggregate claims process that is a compound Poisson process with premium loading factor 0 = 0.10. The claim size distribution is gamma (2, 0.2) . (i) Calculate the adjustment coefficient...

Answered: 1 week ago

Question

★★★★★
Which of the following shows how adjusting the accounts to recognize supplies expense will affect a company's financial statements? [Picture] [Picture] [Picture] [Picture]

Answered: 1 week ago

Question

★★★★★
State Prob(State) Stock A Stock B Boom 15% 0.22 -0.12 Normal 50% 0.07 0.15 Bust 35% -0.09 0.06 Suppose you invest $20,000 into stock A, and $15,000 into stock B: 1.Calculate the weight of A in the...

Answered: 1 week ago

Question

★★★★★
Big Red Motors, Inc., employs 15 sales personnel to market its line of luxury automobiles. The average car sells for $75,000, and a 6 percent commission is paid to the salesperson. Big Red Motors is...

Answered: 1 week ago

Question

★★★★★
Y The National Ne Oeath Ding A Be04% And 2.3% Sppos According To A Hudy Publihe Intercourse Condom Breakag That The Breatage Ale Of B Contains 12 Endoms What Eprobbity Tha At East One Of The Condoms...

Answered: 1 week ago

Question

★★★★★
Assume stock ABC has a Sharpe ratio of 0.8. Let's say there is a portfolio with 50% weight in stock ABC and 50% weight in risk-free asset, what is the portfolio's Sharpe ratio based on this...

Answered: 1 week ago

Question

★★★★★
State Prob(State) Stock A Stock B Boom 15% 0.22 -0.12 Normal 50% 0.07 0.15 Bust 35% -0.09 0.06 Suppose you invest $20,000 into stock A, and $15,000 into stock B: 1.Calculate the weight of A in the...

Answered: 1 week ago

Question

★★★★★
2. Assess the management, organization, and technology factors that have created this problem. In July 2010, reports surfaced about a Stuxnet worm that had been targeting Irans nuclear facilities. In...

Answered: 1 week ago

Question

★★★★★
8-5 Security isnt simply a technology issue, its a business issue. Discuss.

Answered: 1 week ago

Question

★★★★★
2. What is the possible business impact of this security breach for both MWEB and its customers? BMWEB, launched in 1997, became South Africas leading ISP in 1998. It has established itself as a...

Answered: 1 week ago

Previous QuestionNext Question