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important R=1 3) (25) Suppose an insurance firm has three groups of insured people who have claim distribution of the form: 3000 of claims follow
important R=1
3) (25) Suppose an insurance firm has three groups of insured people who have claim distribution of the form: 3000 of claims follow an Nou - 110:02 =100) distribution, 2500 of claims follow an Nu = 120; o2 = 200) distribution, and 4500 of claims follow an N(u = 130; 02 - 300) distribution. How much should the company reserve in order to meet all claims with 9% confidence level. i) in a year ii) in 3 months iii) in a month iv) in 2 weeks time. Covariance matrix read as [100 S=20 30 20 200 -10 30 -10 300 Step by Step Solution
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