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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.
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The number of claims received by an insurance company in a year is Negative Binomial with and The claim amounts severity are independent of one another and are distributed lognormally with parameters and Define 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.
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Suppose you are the risk manager for Allied Lines, a moving company headquartered Rapids, and you selfinsure the property damage liability risk you face from the of 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 $ and the variance of loss is You want to establish a reserve to cover the losses. How much money should you put in the reserve if you want to be percent certain that there will he enough funds availahle to nav all loss obligations?
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