A local insurance company receives two type of claims: car insurance claims and home insurance claims....
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A local insurance company receives two type of claims: car insurance claims and home insurance claims. Each car insurance claim is from a good driver with probability 0.9, or from a bad driver with probability 0.1, independent of all other car insurance claims. Car insurance claims are received according to a Poisson process with rate 20 claims per day. Home insurance claims are received according to a Poisson process with rate 5 claims per day. The two processes are independent. a) Determine the probability that this company receives no claims in a month (30 days). b) Suppose that 8 claims are received on a given day. Determine the probability that exactly 3 of those claims are car insurance claims. c) Determine the probability density function of the time from time 0 until this company receives exactly 10 car insurance claims from bad drivers. d) Suppose that a car insurance claim from a bad driver costs this company $1000, and a car insurance claim from a good driver costs the company $200. Determine the probability that the company spends exactly $2000 on car insurance claims in one day. A local insurance company receives two type of claims: car insurance claims and home insurance claims. Each car insurance claim is from a good driver with probability 0.9, or from a bad driver with probability 0.1, independent of all other car insurance claims. Car insurance claims are received according to a Poisson process with rate 20 claims per day. Home insurance claims are received according to a Poisson process with rate 5 claims per day. The two processes are independent. a) Determine the probability that this company receives no claims in a month (30 days). b) Suppose that 8 claims are received on a given day. Determine the probability that exactly 3 of those claims are car insurance claims. c) Determine the probability density function of the time from time 0 until this company receives exactly 10 car insurance claims from bad drivers. d) Suppose that a car insurance claim from a bad driver costs this company $1000, and a car insurance claim from a good driver costs the company $200. Determine the probability that the company spends exactly $2000 on car insurance claims in one day.
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a Determine the probability that this company receives no claims in a month 30 days Since the two ty... View the full answer
Related Book For
Vector Mechanics for Engineers Statics and Dynamics
ISBN: 978-0073212227
8th Edition
Authors: Ferdinand Beer, E. Russell Johnston, Jr., Elliot Eisenberg, William Clausen, David Mazurek, Phillip Cornwell
Posted Date:
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