Consider the ruin problem of an insurance company. The net loss for the i-th claim is Xi = Yi cTi . Here Yi is the size of the i-th claim. They are i.i.d. exponential random variables with parameter = 2. Ti is the inter-arrival time between claims. They are i.i.d. exponential random variables with parameter = 5. c = 5 is the premium received per unit time. a = 2 is the initial reserve. Let Sn = Pn i=1 Xi and a = inf{n 0 : Sn a}. Estimate the ruin probability P[a

Consider the ruin problem of an insurance conpany. The net loss for the i-th claim is Xi=YicTi. Here - Yi is the size of the i-th claim. They are i.i,d. exponential random variables with parameter =2. - Ti is the inter-arrival time between claims. They are i.i.d. exponential random variables with parameter =5. - c=5 is the premium received per unit time. - a=2 is the initial reserve. Let Sn=i1nXi and a=inf{n0:Sna}. Estimate the ruin probability P[a