ii. With a full insurance, how does the distribution of Buckeye Brewerys cash flow look like (assume the price of insurance is P)?

iii. With a full insurance, how does the distribution of the insurers claim costs look like?

iv. What is the loading of the insurance if Buckeye Brewery pays $100,000 to the insurer?

v. Given the insurance premium of $100,000, calculate the expected value and stand deviation of Buckeye Brewerys cash flow after purchasing insurance.

1. Assume that cash flow for Buckeye Brewery have the following distribution: State No Loss State$3,000,000 Loss State 1 Loss State2 Loss State 3 Probability 0.96 0.026 0.010 0.004 Cash flow 1,500,000 800,000 0 i. What are the expected value and stand deviation of Buckeye Brewery's cash ii. With a full insurance, how does the distribution of Buckeye Brewery's cash ii. With a full insurance, how does the distribution of the insurer's loss look like? flow? flow look like (assume the price of insurance is P)? What is the loading of the insurance if Buckeye Brewery pays $100,000 to the insurer? Given t iv. 0,000, calculate the expected value and V. and deviation of Buckeye Brewery's cash flow after purchasing insurance