only one question, it is regular HW!

4. XYZ Insurance Corp has sold 400 policies. On average, each of the policies have expected claim cost = $7,250 and a standard deviation of claim costs =$20,000. Claims on policies are independent of each other. Draw a reasonable probability distribution for the firm's total claim costs. By a reasonable probability distribution, I am looking for a graph that illustrates the expected value, standard deviation (which you need to calculate), and skewness (which you do not have to calculate). Thus, you need to label values on the horizontal axis to illustrate these characteristics. Calculations needed for graph: Let Li = claim on policy i Expected value of total claim costs = E( L 1 + L2 + ... L400) = Standard deviation of total claims = { Var(L1 + L2 + ... L400) }1/2 = Suppose claim costs are the only source of uncertainty for XYZ Corporation. If it wanted to ensure that it could pay all of its claims with probability 0.99, what would be the value of assets that it would need to hold? What is the value of capital it would need? What is the value of the capital to liability ratio