Question
For automobile policies of an insurance company, the expected yearly claim per policyholder is $250 with a standard deviation of $500. Let p be the
For automobile policies of an insurance company, the expected yearly claim per policyholder is $250 with a standard deviation of $500. Let p be the probability that the total yearly claim exceeds $1,000,000. The insurance company wants to keep p less than 0.15. Approximately, what is the maximum number of policyholders can this company have for automobile insurance?
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Introductory Real Analysis
Authors: A N Kolmogorov, S V Fomin, Richard A Silverman
1st Edition
0486134741, 9780486134741
