When an individual is admitted to the hospital, the hospital charges have the following characteristics: (1)...
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When an individual is admitted to the hospital, the hospital charges have the following characteristics: (1) Charges Room Other Mean 1000 500 Standard Deviation 500 300 (ii) The covariance between an individual's Room Charges and Other Charges is 100,000. An insurer issues a policy that reimburses 100% for Room Charges and 80% for Other Charges. The number of hospital admissions has a Poisson distribution with parameter 4. Determine the variance of the of the insurer's payout for the policy. When an individual is admitted to the hospital, the hospital charges have the following characteristics: (1) Charges Room Other Mean 1000 500 Standard Deviation 500 300 (ii) The covariance between an individual's Room Charges and Other Charges is 100,000. An insurer issues a policy that reimburses 100% for Room Charges and 80% for Other Charges. The number of hospital admissions has a Poisson distribution with parameter 4. Determine the variance of the of the insurer's payout for the policy.
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Given N The insurers payout for the policy is denoted as S That is S Where N ... View the full answer
Related Book For
Legal Research Analysis and Writing
ISBN: 978-1305948372
4th edition
Authors: William H. Putman, Jennifer Albright
Posted Date:
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