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Solve these as if it were in excel. Show functions used please. Question 1 The number of claims received by an insurance company in a

Solve these as if it were in excel. Show functions used please.
Question 1
The number of claims received by an insurance company in a year is Negative Binomial with r=23 and p=0.51. The claim amounts (severity) are independent of one another and are distributed lognormally with parameters =7.97 and =1.26. Define S to be the random variable for the totalamount of claims paid in a year. Find the pure premium (actuarially fair premium) and variance of total claims in a year.
Question 2
Suppose you are the risk manager for Allied Lines, a moving company headquartered Rapids, and you self-insure the property - damage liability risk you face from the of 376 moving trucks. Assume each truck's loss distribution is independent and identically
distributed and, based upon historical data, you know the mean of the loss distribution for one truck is $2000 and the variance of loss is 26,325,000. You want to establish a reserve to cover the losses. How much money should you put in the reserve if you want to be 90 percent certain that there will he enough funds availahle to nav all loss obligations?

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