R=1

3) (25) Suppose an insurance firm has three groups of insured people who have claim distriburn of the form: 3000 of claims follow a N(u = 110,, o2 = 100) distribution , 2500 of claims folow a N (u = 120, ,02 = 200) distributions and 4500, of claims folow a N(u = 130, o2 = 300) How much should the company reserve in order to meet all claims with 9R% confidence level i) in a year ii) in 3 months iii) in a month iv) in 2 week time. Covariance matrices read as S= [100 20 30 20 200 -10 30 - 10 300 3) (25) Suppose an insurance firm has three groups of insured people who have claim distriburn of the form: 3000 of claims follow a N(u = 110,, o2 = 100) distribution , 2500 of claims folow a N (u = 120, ,02 = 200) distributions and 4500, of claims folow a N(u = 130, o2 = 300) How much should the company reserve in order to meet all claims with 9R% confidence level i) in a year ii) in 3 months iii) in a month iv) in 2 week time. Covariance matrices read as S= [100 20 30 20 200 -10 30 - 10 300