Question
Sue is analyzing the workers compensation (WC) losses of the employees in her firm that occurred over a one-year period, based on the following data
Sue is analyzing the workers compensation (WC) losses of the employees in her firm that occurred over a one-year period, based on the following data
. Number of WC Claims Filed/Worker Number of Workers Total Number of Claims 0 850 0 1 100 100 2 50 100
Use the following information to answer Questions 8 and 9 below, which pertain to Questions 6 and 7.
Range of Loss Amount Midpoint Dollar Amount of Loss Number of Losses Total $ Amt. of Losses $12000 $1,000 180 $180,000 $200110,000 $6,000 20 $120,000 Greater than $12,000 NA 0 0
7.Use the information in the table to estimate a probability distribution for the frequency distribution of losses per worker in a year.
8.Use the information in the table to find the average severity per claim
9.Use the information in the table to estimate a probability distribution for the loss severity per claim.
10.Using your answers from Question 7 and Question 9, use convolution to find the average loss.
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