Question: 5. We assume 4 people having same distribution. The pooling arrangement between 4 people is given as following, Loss = Outcome $10,000 $7,500 $5,000 $2,500

5. We assume 4 people having same distribution. The pooling arrangement

5. We assume 4 people having same distribution. The pooling arrangement between 4 people is given as following, Loss = Outcome $10,000 $7,500 $5,000 $2,500 $0 Probability 0.000006 0.000475 0.014 0.171 0.815 a. Calculate the Expected value b. Calculate variance and Standard deviation c. Compare your results to those of question 3 and 4 (c). Interpret your results Generation and expected value = 500 Stanclard deviation=2179.44 variance - 4750000 Q4 expected value=500 I standard deviation-1541.1 Lovariance: 2375 000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Data for L Takemoto, interior decorating, are presented as follows. Jan. 2 Stockholders invested $15,000 cash in the business in exchange for common stock. 3 Purchased used car for $8.200 cash for...

Discuss and provide Detailed Explanations and references to the following questions. Answer only if you are SURE . (a) Explain the advantages and disadvantages of the high-low method of cost...

All the questions are attached in the photos 12:26 7 A moodle.mnu.edu.mv C ECO 109 BUSINESS ECONOMICS | Tutorial One - Introduction to Economics and Key Concepts Page 2 of 3 CASE STUDY SCARCITY AND...

Files 12:56 PM Mon May 16 25% Unit+2+workbook Q . . . Home Insert Draw Layout Review View Calibri Bold (Body) 36 B I U aAv A v Unit 2-Supply and Demand Name: HR: LAW OF SUPPLY Use the space below to...

Hi, I have an Assignment for my Finance Subject. I have attached the necessary documentation here for you to view including the Lecture slides of all the Topics covered for this assignment. Please...

OPERATIONS MANAGEMENT ASSIGNMENT 6 1 Human resources, project management and operations management are all equally vital to a business's success. Each of these focuses on different areas of the...

1. What is the issue being addressed in the paper? 2. What are the findings of the paper? 3. Why is this paper important to auditors, and what are the implications of this paper for the auditing...

PLEASE COMPLETE NO LATER THAN 10/14 @3:30PM Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

uestion: 1. IN A STOCK ACQUISITION ACCOUNTED FOR BY THE EQUITY METHOD, A PORTION OF THE PURCHASE PRICE OFTEN IS ATTRIBUTABLE TO GOODWILL OR TO SPECIFIC ASSETS OR LIABILITIES. HOW OR UNDER WHAT BASIS...

You helped me a couple of weeks ago. I was wondering if i could setup a time for tomorrow that you could be available to help me with some questions. I will pay $20 per question. They are short and I...

Discounting a note receivable is most similar to ______. A. factoring an account receivable B. pledging an account receivable C. assigning an account receivable D. None of the above

A book about college reports that the mean time students study each week is 1015 minutes. A dean says she believes the mean is greater than 1015 minutes. Suppose she takes a random sample of 64...

Consider the heirarchy parameters for using sub - customers. How many tiers can you have in the hierarchy including the parent customer in quickbooks online?

Exam Study Guide Name TRUE/FALSE. Write 'T' if t 1) Cost of goods sold includes the actual costs of the goods sold and customer. 1) he statement is true and'F' if the statement is false. the costs...