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Page 15 of 30 Consider the following Sample Loss Frequency and Severity Distributions. Assume also that these distributions are independent. What is the probability of
Page 15 of 30 Consider the following Sample Loss Frequency and Severity Distributions. Assume also that these distributions are independent. What is the probability of having a total loss of 75,000? Frequency Distribution Severity Distribution Probability Frequency Probability Severity 0.5 0.7 25,000 O 0.3 1 0.2 50,000 0.2 2 0.1 200,000 O0.028 0.056 0.9 O0.18
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