Question 36 Na wed Mand out of 1000 Flag question You have to show the calculations for this problem Ultimate answers, 1 given alone, will not be graded It Excel sheet is optional, but I believe it will save you a lot of time and calculation errors. If you use the excel sheet for answers, make sure to send It, by email mediately after you submit your exam. UMN Insurance company sells fice Insurance to local homeowners. The homeowner shall pay $250 per a um as a premium to insure his house. The probability of fire happening in a year is 0.2%, and in the event of fire, the insured damages the payout on the policy) will be $100,000 a) What is the possible payout on each polley ain/loss for the insurance company on each policy for the event of Prevs the payout in the event of no fre. Assiga the probability for each event Event offres payout - Event of no fire-payout b) Suppose you are the only shareholder of LMN Insurance, and the company anty issues one insurance policy Calculate the Expected return in 5. Variance and Standard Deviation in Sof you gainstosses. E(1) Variance SD- Question 36 Not yet angered Moned out of 5000 Flag question You have to show the calculations for this problem I Ultimate answers, give alone, will not be graded Excel Sheet is optional, but I believe it will save you a lot of time and calculation effors. If you use the excel sheet for answers, make sure to send it by email Immediately after you submit your eam. LMN Insurance company setts fire insurance to local homeowners. The homeowner shall pay $250 per annum as a premium to Insure his house. The probability of Pre happening in a year is 02% and in the event of fire, the insured damages the payout on the policy will be 5:00,000. 3) What is the possible payout on each policy (Sainoss for the insurance company on each policy) for the event of fire vs. the payout in the event of no fe. Assign the probability for each event. Event offre payout Event of no fire > payout Suppose you are the only shareholder of LMN Insurance, and the company only issues one insurance polley, Calculate the expected return in S. Variance and Sundand Deviation In 5 of you gain/esses E- Variance SD- Suppose your company issues two policies. The risk of fire is independent across the two policies. There are three posities whereby a fire doesn't happen in any house, ) the happens in one house tre happens in both houses What is the possible payout on each policy gain toss for the insurance company on each policy for the event of fire vs. the payout in the event of no fire. Assign the probability for each event. DINT: Events and Events are independent, then the probably that Events and B both occur is equal to the probability that Event A occurs times the probability that event occurs > PAB) - PAP) Event of notre payout - Event of fire in one house payout - Event of fe in two houses -> payout - d) Calculate the Expected return in S. Variance and standard deviation in Sof you can losses E01 - Variance - SD- Did risk pooling increase or decrease the variance of your profits the only shareholder in the insurance company! Now assume you are a SCM shareholder in L.MN urance company along with another partner who holds the remaining Sok. What is the pain payout on your Share of the company for the three possible scenarios? 9 Calculate the spected return in Sarance and Standard Deviation in sof you palestones MO Question 36 Na wed Mand out of 1000 Flag question You have to show the calculations for this problem Ultimate answers, 1 given alone, will not be graded It Excel sheet is optional, but I believe it will save you a lot of time and calculation errors. If you use the excel sheet for answers, make sure to send It, by email mediately after you submit your exam. UMN Insurance company sells fice Insurance to local homeowners. The homeowner shall pay $250 per a um as a premium to insure his house. The probability of fire happening in a year is 0.2%, and in the event of fire, the insured damages the payout on the policy) will be $100,000 a) What is the possible payout on each polley ain/loss for the insurance company on each policy for the event of Prevs the payout in the event of no fre. Assiga the probability for each event Event offres payout - Event of no fire-payout b) Suppose you are the only shareholder of LMN Insurance, and the company anty issues one insurance policy Calculate the Expected return in 5. Variance and Standard Deviation in Sof you gainstosses. E(1) Variance SD- Question 36 Not yet angered Moned out of 5000 Flag question You have to show the calculations for this problem I Ultimate answers, give alone, will not be graded Excel Sheet is optional, but I believe it will save you a lot of time and calculation effors. If you use the excel sheet for answers, make sure to send it by email Immediately after you submit your eam. LMN Insurance company setts fire insurance to local homeowners. The homeowner shall pay $250 per annum as a premium to Insure his house. The probability of Pre happening in a year is 02% and in the event of fire, the insured damages the payout on the policy will be 5:00,000. 3) What is the possible payout on each policy (Sainoss for the insurance company on each policy) for the event of fire vs. the payout in the event of no fe. Assign the probability for each event. Event offre payout Event of no fire > payout Suppose you are the only shareholder of LMN Insurance, and the company only issues one insurance polley, Calculate the expected return in S. Variance and Sundand Deviation In 5 of you gain/esses E- Variance SD- Suppose your company issues two policies. The risk of fire is independent across the two policies. There are three posities whereby a fire doesn't happen in any house, ) the happens in one house tre happens in both houses What is the possible payout on each policy gain toss for the insurance company on each policy for the event of fire vs. the payout in the event of no fire. Assign the probability for each event. DINT: Events and Events are independent, then the probably that Events and B both occur is equal to the probability that Event A occurs times the probability that event occurs > PAB) - PAP) Event of notre payout - Event of fire in one house payout - Event of fe in two houses -> payout - d) Calculate the Expected return in S. Variance and standard deviation in Sof you can losses E01 - Variance - SD- Did risk pooling increase or decrease the variance of your profits the only shareholder in the insurance company! Now assume you are a SCM shareholder in L.MN urance company along with another partner who holds the remaining Sok. What is the pain payout on your Share of the company for the three possible scenarios? 9 Calculate the spected return in Sarance and Standard Deviation in sof you palestones MO
