Reference no: EM131583062

Question: Nineteen losses were observed. Six had a deductible of 250, six had a deductible of 500, and seven had a deductible of 1,000. Three losses were paid at a policy limit, those values being 1,000, 2,750, and 5,500. For the 16 losses not paid at the limit, one was in the interval (250, 500), two in (500, 1,000), four in (1,000, 2,750), seven in (2,750, 5,500), one in (5,500, 6,000), and one in (6,000, 10,000). Estimate the probability that a policy with a deductible of 500 will have a claim payment inexcess of 5,500.