Based on the past experience, the insurer observes that 85% of polices incur no loss and...

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Based on the past experience, the insurer observes that 85% of polices incur no loss and the remaining 15% of polices result in claims which are normally distributed with average claim 6000 and variance 6 250 000. 14 400 polices were sold at the gross price of 1208,12 for each policy. The gross premium contains a load of 25% for insurer's acquisition costs and administrative expenses. Calculate probability that the gross premium will suffice to meet all claims and expenses. Assume that the no-claim ratio of 15% holds. A table below contains several values of probability function of the standard normal distribution: Z 0,385 0,454 0,524 0,598 0,675 F(z) 0,650 0,675 0,700 0,725 0,750 0,755 0,775 0,842 0,935 0,800 0,825 Based on the past experience, the insurer observes that 85% of polices incur no loss and the remaining 15% of polices result in claims which are normally distributed with average claim 6000 and variance 6 250 000. 14 400 polices were sold at the gross price of 1208,12 for each policy. The gross premium contains a load of 25% for insurer's acquisition costs and administrative expenses. Calculate probability that the gross premium will suffice to meet all claims and expenses. Assume that the no-claim ratio of 15% holds. A table below contains several values of probability function of the standard normal distribution: Z 0,385 0,454 0,524 0,598 0,675 F(z) 0,650 0,675 0,700 0,725 0,750 0,755 0,775 0,842 0,935 0,800 0,825

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