RISK MANAGEMENT AND INSURANCE

R=2

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 Nou = 6000: 02 = 600000) distribution, and 5000 of claims follow an N(u = 7000; 02 = 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 $8.0002