In any given year, suppose the payout scenarios for an insurance company is as follows, and...
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In any given year, suppose the payout scenarios for an insurance company is as follows, and assume that these are the only possible scenarios. Scenario payout scen. 1 $600000 0.001 scen. 2 $90000 0.05 scen. 30 0.949 probability What is the variance of payout, per policy holder for this company if the company has 1930 customers (policy holders)? Note: 1- Only round your final answer. Round your final answer to the nearest integer. Your Answer: In any given year, suppose the payout scenarios for an insurance company is as follows, and assume that these are the only possible scenarios. Scenario payout scen. 1 $600000 0.001 scen. 2 $90000 0.05 scen. 30 0.949 probability What is the variance of payout, per policy holder for this company if the company has 1930 customers (policy holders)? Note: 1- Only round your final answer. Round your final answer to the nearest integer. Your Answer:
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To calculate the variance of payout per policy holder for the given insurance company we need to follow these steps Step 1 Calculate the expected payo... View the full answer
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Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
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