An insurance company is running business under following conditions: - it earns in average EUR 50...
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An insurance company is running business under following conditions: - it earns in average EUR 50 000 per day from selling insurance policies, - it receives in average 10 claims per day, - the average claim is EUR 4 000. the claim size is bounded from above by EUR 100 000. 1) Assuming that all conditions of the classical risk process are fulfilled, estimate the ruin probability for initial capitals EUR 10k, 100k, 1m, 5m, and 10m, using the Lundberg inequality. 2) Draw a graph of the upper bound of the ruin probability (with initial capital on the x-axis.) An insurance company is running business under following conditions: - it earns in average EUR 50 000 per day from selling insurance policies, - it receives in average 10 claims per day, - the average claim is EUR 4 000. the claim size is bounded from above by EUR 100 000. 1) Assuming that all conditions of the classical risk process are fulfilled, estimate the ruin probability for initial capitals EUR 10k, 100k, 1m, 5m, and 10m, using the Lundberg inequality. 2) Draw a graph of the upper bound of the ruin probability (with initial capital on the x-axis.)
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Stooit Junion claims officer enters the claim datcuils in Insurance Information systen upem receipt ... View the full answer
Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
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