A loss random variable X has a uniform distribution on the interval 0, 1000]. Find the variance
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Question:
A loss random variable X has a uniform distribution on the interval 0, 1000]. Find the variance of the insurer payment per loss if there is a deductible of 100 and a policy limit of 800. (The policy limit is applied before the deductible, i.e. the most the company will pay will be $700 = $800 limit - $100 deductible.)
Related Book For
Economics of Money, Banking and Financial Markets
ISBN: 978-0321598905
9th Edition
Authors: Frederic S. Mishkin
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