An insurance company insures four large risks

Reference no: EM131104529

An insurance company insures four large risks. The number of losses for each risk is independent and identically distributed on the points {0, 1, 2} with probabilities 0.7, 0.2, and 0.1, respectively. The size of an individual loss has the following cumulative distribution function:

Obtaining uniform random numbers as instructed at the beginning of the Problems section, perform a simulation experiment twice of the total loss generated by the four large risks.

Reference no: EM131104529

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