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Mara Jade also analyzes the severity from all claims that occurred over a one-year period, based on the following data: Range of Loss Amount
Mara Jade also analyzes the severity from all claims that occurred over a one-year period, based on the following data: Range of Loss Amount $1 - $7,999 $8,000 - $20,000 Greater than $20,000 A) Fill in the table to find the average severity per claim. (9 Points) B) Use the information in the table to estimate a probability distribution for the loss severity per claim. (9 Points) C) Use convolution to find the average loss. (9 Points) Midpoint Dollar Amount of Losses Number of Losses $4,000 100 $14,000 50 $80,000 3
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