In 2005 a risk has a two-parameter Pareto distribution with a = 2 and 0-3000 ....
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In 2005 a risk has a two-parameter Pareto distribution with a = 2 and 0-3000 . In 2006 losses inflate by 20%. An insurance on the risk has a deductible of 600 in each year. P₁, the premium in year i, equals 1.2 times the expected claims. The risk is reinsured with a deductible that stays the same in each year. R₁, the reinsurance premium in year i, equals 1.1 times the expected reinsured claims. R2005/ P2005 0.55. Calculate R2006 / P2006. (A) 0.46 (B) 0.52 (C) 0.55 (D) 0.58 (E) 0.66 In 2005 a risk has a two-parameter Pareto distribution with a = 2 and 0-3000 . In 2006 losses inflate by 20%. An insurance on the risk has a deductible of 600 in each year. P₁, the premium in year i, equals 1.2 times the expected claims. The risk is reinsured with a deductible that stays the same in each year. R₁, the reinsurance premium in year i, equals 1.1 times the expected reinsured claims. R2005/ P2005 0.55. Calculate R2006 / P2006. (A) 0.46 (B) 0.52 (C) 0.55 (D) 0.58 (E) 0.66
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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