User Account

All Pages

Calculation of an insurance company total assets

Assignment Help Mathematics
Reference no: EM13830275

Problem:

Let Sn be the total assets of an insurance company at the end of year n. Suppose that in year n the company receives premiums of c and pays claims totaling ξn, where ξn are independent with Normal (µ, σ2) distribution, where 0 < µ < c. The company is ruined if its assets fall to 0 or below. Show

P (ruin) ≤ exp(-2(c - µ)S0/σ2)

Summary of problem:

This question is basically from Mathematics and it deals with calculation of an insurance company's total assets.

Reference no: EM13830275

Questions Cloud

Percentages rounded off to two decimal points : 1.portfolio is invested 48.3% in Stock A, 28.2% in Stock B, and the remainder in Stock C. The expected returns are 16.3%, 23.4%, and 6.2% respectively. What is the portfolio's expected returns?Note: Enter your answer in percentages rounded off to two..
Describe the paid domestic service in canada : Describe the paid domestic service in Canada. This is a report that emphasizes on the discriminations the domestic workforce has been facing because of the existence of gender and class inequalities.
Solving minimization problem using simplex method : Solve the given minimization problem by the simplex method.
Discuss the option of dividend reinvestment plans : Calculate the total number of shares to be acquired by CFR based on Adcock's market value of R70 per share - Determine the exchange ratio based on market values for the proposed acquisition.
Calculation of an insurance company total assets : Let Sn be the total assets of an insurance company at the end of year n. Suppose that in year n the company receives premiums of c and pays claims totaling ξn, where ξn are independent with Normal (µ, σ2) distribution, where 0
Calculate the value of martingale : Suppose Fn ↑ F∞ and Yn → Y∞ in L1. Show that E(Yn|Fn) →E(Y∞|F∞) in L1
Discusses poor working memory in children : The problem is a research critique belongs to Sociology and the journal article that is being reviewed is "Adaptive Training leads to sustained enhancements of poor working memory in children" by Joni Holmes.
Problem on martingale calculation : Let (Xn) be adapted to (Fn) with 0 ≤ Xn ≤ 1. Let α, β > 0 with α + β = 1. Suppose X0 = x0 and P(Xn+1 = α + βXn|Fn) = Xn, P(Xn+1 = βXn|Fn) = 1 - Xn
Non-negative martingale calculation : Let (Xn) be a martingale with supnE|Xn|

Reviews

Write a Review

Mathematics Questions & Answers

  What was the average monthly rent in 2005

In spring 2006 the average monthly rent was $1,355, an increase of 3.6percent from 2005. What was the average monthly rent in 2005.

  Find mean and variance explained in solution

Mean and variance explained in this solution. A school is sending 11 children to a camp. If 25% of the children in the school are first graders

  What is the speed of the plane

t an altitude of 8 miles and passes directly over a radar antenna. When the plane has a distance 10 miles from the radar, the radar detects that the distance in increasing at a rate of 300 miles/hour. What is the speed of the plane?

  Determine how many udges the city needs

To avoid creating a backlog, all cases must be handled by the end of December. Formulate a linear program that can be used to determine how many udges the city needs.

  What is the weight of the copper

What is the weight of the copper?

  Find the standard deviation of the sample

A sample of 12 measurements has a mean of 23 and a standard deviation of 2.75. Suppose that the sample is enlarged to 14 measurements, by including two additional measurements having a common value of 23 each. Find the standard deviation of the sa..

  Find the 99% confidence interval of the mean number

A random sample of 48 days taken at a large hospital shows that an average of 38 patients were treated in the emergency room (ER) per day. The standard deviation of the population is 4.

  Explain the rise in gasoline prices from 1997 to 2006

Use the coordinates (1997, 1.26) and (2006, 2.31) to find the slope, or rate of change, between th two points. Describe how you arrived at your answer.

  How fast is the water level rising

A swimming pool is 22 feet wide and has transverse cross-sections,being filled at a rate of 1.1 cubic feet per minute, how fast is the water level rising when the depth of water is 1 feet?

  The chinese remainder theorem

The Chinese remainder theorem

  What are the highest and lowest temperatures

at a point (x,y) on a metal plate is T(x,y)=4x2-4xy+y2. An ant on the plane walks around the circle of radius 5 centered at the origin. What are the highest and lowest temperatures encountered by the ants.

  How to find volume of a cone in cubic units

how to find volume of a cone in cubic units when the radius is 5 and height is 11

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd