RISK MANAGEMENT AND INSURANCE

2) (30) Suppose an insurance firm has three groups of insured people who have claim distribution of the form: 2000 of claims follow an Nu = 5000 : 02 =500000) distribution 3000 of claims follow an Nu 6000; O2 = 600000) distribution, and 5000 of claims follow an N(u = 7000:62 = 700000) distribution = 2) (30) Suppose an insurance firm has three groups of insured people who have claim distribution of the form: 2000 of claims follow an N(u = 5000 : 02 =500000) distribution , 3000 of claims follow an Nu = 6000; O2 = 600000) distribution, and 5000 of claims follow an Nou - 7000; 01 - 700000) distribution i) What is the probability that a random claim will exceed $6,000? ii) Calculate the probability that a random claim will exceed $8,000