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In any given year, suppose the payout scenarios for an insurance company is as follows, and assume that these are the only possible scenarios.
In any given year, suppose the payout scenarios for an insurance company is as follows, and assume that these are the only possible scenarios. Scenario payout scen. 1 $600000 0.001 scen. 2 $90000 0.05 scen. 30 0.949 probability What is the variance of payout, per policy holder for this company if the company has 1930 customers (policy holders)? Note: 1- Only round your final answer. Round your final answer to the nearest integer. Your Answer:
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To calculate the variance of payout per policy holder for the given insurance company we need to follow these steps Step 1 Calculate the expected payo...
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Making Hard Decisions with decision tools
Authors: Robert Clemen, Terence Reilly
3rd edition
538797576, 978-0538797573
