The Amazon.com, Inc. owns trucks used for cargo shipment. In the course of their activities, Amazon...

 

 

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The Amazon.com, Inc. owns trucks used for cargo shipment. In the course of their activities, Amazon sustains losses in the form of property damages to their trucks. Assume that the Amazon owns a truck station located in Pennsylvania (PA) and also another station in New Jersey (NJ). The PA station has 1000 trucks in total, while the NJ station has 2500 trucks in total. 1. The Amazon has the following sample for the reported number of accidents per truck in the PA station and NJ station, respectively. # of accidents per truck # of trucks of having this # of accidents per year PA Station NJ Station 258 637 36 49 2 6 14 What is the random variable illustrated here? [1 point] а. b. Calculate the expected value of frequency per truck in PA station and NJ station, respectively. What are the units of measurement? [3 points] Calculated the variance of frequency per truck in PA station and NJ station, respectively. What are the units of measurement? [3 points] с. d. How much risk is present in PA station and NJ station, respectively? Which truck station is riskier, PA station or NJ station? What are the units of measurement? [3 points] Based on the information in PA station, Amazon has constructed the following table related to the dollar amount of losses for 48 reported accidents. # of accidents having $ amount of losses this $ amount of losses $800 30 $1,500 12 $3,200 Derive the probability distribution for severity based on this data. Be careful to label exactly what you are defining as the probability distribution. [2 points] а. b. Calculate the expected value of severity per truck in PA station. [2 points] Calculate the expected loss per truck in PA station. [2 points] C. d. Calculate the expected loss for ALL trucks in PA station. [2 points] 2. The Amazon.com, Inc. owns trucks used for cargo shipment. In the course of their activities, Amazon sustains losses in the form of property damages to their trucks. Assume that the Amazon owns a truck station located in Pennsylvania (PA) and also another station in New Jersey (NJ). The PA station has 1000 trucks in total, while the NJ station has 2500 trucks in total. 1. The Amazon has the following sample for the reported number of accidents per truck in the PA station and NJ station, respectively. # of accidents per truck # of trucks of having this # of accidents per year PA Station NJ Station 258 637 36 49 2 6 14 What is the random variable illustrated here? [1 point] а. b. Calculate the expected value of frequency per truck in PA station and NJ station, respectively. What are the units of measurement? [3 points] Calculated the variance of frequency per truck in PA station and NJ station, respectively. What are the units of measurement? [3 points] с. d. How much risk is present in PA station and NJ station, respectively? Which truck station is riskier, PA station or NJ station? What are the units of measurement? [3 points] Based on the information in PA station, Amazon has constructed the following table related to the dollar amount of losses for 48 reported accidents. # of accidents having $ amount of losses this $ amount of losses $800 30 $1,500 12 $3,200 Derive the probability distribution for severity based on this data. Be careful to label exactly what you are defining as the probability distribution. [2 points] а. b. Calculate the expected value of severity per truck in PA station. [2 points] Calculate the expected loss per truck in PA station. [2 points] C. d. Calculate the expected loss for ALL trucks in PA station. [2 points] 2.