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Use the following information to answer the next two questions, which pertain to the previous two questions. Range of loss amount Midpoint dollar amount of
Use the following information to answer the next two questions, which pertain to the previous two questions.
Range of loss amount | Midpoint dollar amount of loss | Number of losses | Total $ amt. of losses |
$1 - 2000 | $1,000 | 270 | $270,000 |
$2001-10,000 | $6,000 | 30 | $180,000 |
Greater than $10,000 | NA | 0 | 0 |
- Use the above information to find the average severity per claim.
- Use the above information to estimate a probability distribution for the loss severity per claim.
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