The number of accident claims incurred per year for each insured is a Bernoulli random variable...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The number of accident claims incurred per year for each insured is a Bernoulli random variable with probability 8, which takes value 0.1 with probability 0.8 and 0.2 with probability 0.2. Each claim may be of amount 20, 30, or 40, with equal probabilities. Claim frequency and claim severity are assumed to be independent for each insured. The data for the total claim amount is given in the table below. Year Number of insureds Total claim amount 100 240 200 380 250 592 280 1234 3 Calculate the Bühlmann-Straub credibility prediction of the pure premium and total loss in the fourth year. The number of accident claims incurred per year for each insured is a Bernoulli random variable with probability 8, which takes value 0.1 with probability 0.8 and 0.2 with probability 0.2. Each claim may be of amount 20, 30, or 40, with equal probabilities. Claim frequency and claim severity are assumed to be independent for each insured. The data for the total claim amount is given in the table below. Year Number of insureds Total claim amount 100 240 200 380 250 592 280 1234 3 Calculate the Bühlmann-Straub credibility prediction of the pure premium and total loss in the fourth year.
Expert Answer:
Answer rating: 100% (QA)
To calculate the BhlmannStraub credibility prediction of the pure premium and total loss in the four... View the full answer
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
Posted Date:
Students also viewed these accounting questions
-
For a Bernoulli random variable with probability of success P = 0.5, compute the mean and variance.
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
In this exercise, a proof of equation (7.73) is constructed. Write the random sum as Where is a Bernoulli random variable in which Yi = 1 if N i and Yi = 0 if . (a) Prove that Yi and are Zi...
-
in an armicie entitled Fuel Economy Calculations tio Be Alteted lames Healey indicated that the goermnt planned to change how it caleulates fuel economy for new cas and trucks Thia in the first...
-
Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. a. ________ Received $80,000 from the sale of...
-
Calculate the molar mass of each of the following compounds: (a). Fe 2 O 3 , iron(III) oxide (b). BCl 3 , boron trichloride (c). C 6 H 8 O 6 , ascorbic acid (vitamin C)
-
Apply the central difference formula (4.10) to approximate the first derivatives of the functions \(u_{1}(x)=\sin (x), u_{2}(x)=\sin (3 x)\), \(u_{3}(x)=\sin (10 x)\) at \(x=0\). Use the uniform grid...
-
The comparative condensed balance sheets of Conard Corporation are presented below. Instructions(a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2010 as a...
-
On June 1, 2021, ABC Forest Products sold merchandise with a P120,000 list price to XYZ Enterprises. Trade Discount Credit Terms Date Paid - 2/10, n/30 June 11 20% 1/15, n/30 June 14 40% n...
-
Recall a time when you were involved in a group similar to the Bayside City Tire Companya time when a decision had to be made. What were some of the rules that influenced the process of decision...
-
7. Portfolio expected return and risk A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk...
-
ABC Corporation produces a product that requires 2.6 pounds of materials per unit. The hourly wage rate is $9.00 per hour, but a raise that will average $0.25 will go into effect soon. Payroll taxes...
-
Everland Caf is a cafe spread across various locations, where they are famous for their coffee and pastries. In carrying out its operational activities it is known that the fixed cost for the cafe is...
-
Reference: https://serialpodcast.org/season-one/1/the-alibi Think of someone in your life who you think would be a good criminal defense attorney or other member of a defense team. Please answer the...
-
Discuss the advantages and disadvantages of the standard costing system from the perspective of the accounting professional and from the perspective of the company's other internal users.
-
Consider the health care environment in which you currently work or plan to work, and select a specific health care organization within that setting to focus on for this assignment. Possible options...
-
orman Company purchased a new machine for its production process. The following costs were incurred for the new machine: Training costs for workers who will operate the machine $11,000 Wages paid to...
-
Differentiate. y = ln(3x + 1) ln(5x + 1)
-
Pantry Shopper is a supermarket in suburban Philadelphia, where competition among supermarkets is fierce. Pantry Shopper management feels that because prices are so competitive, shoppers will choose...
-
Formulate the Krampf Lines Railway Company situation (Problem 9-17) as a linear program and solve using computer software.
-
What is a mixed game, and how is it solved?
-
10. CPA QUESTION In general, which of the following statements is correct conceming the priority among checks drawn on a particular account and presented to the drawee bank on a particular day? a....
-
11. Rev. Janet Hooper Ritchie knew that the shoe store at Buckland Hills mall in Manchester, Connecticut, would not accept a Discover credit card, so she stopped at an ATM for a $100 cash advance....
-
Go to http://www.legaldocs.com (or an equivalent site) and fill in the blanks of a promissory note. Who is the maker, and who is the payee of your note? Did you create a demand note?
Study smarter with the SolutionInn App