Consider an insurer, for which the loss due to a policy is uniformly distributed between R 5

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Consider an insurer, for which the loss due to a policy is uniformly distributed between R

50 000

and R

100 000 .

Determine a premium p and a number of policies sold, n

,

to ensure that the return of the insurance portfolio is at least

4 %,

and standard deviation at most

1 % .

The correlation between different policies is

1 % .

Related Book For answer-question

Introduction to Probability

ISBN: 978-0716771098

1st edition

Authors: Mark Daniel Ward, Ellen Gundlach

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Posted Date: Apr 01, 2024 02:53 AM

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Consider an insurer, for which the loss due to a policy is uniformly distributed between R 5

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To solve this problem we need to find the appropriate premium p and the number of policies sold n to ... View the full answer

Introduction to Probability

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