Reference no: EM132817548
Assignment: This task requires you to fit a Markov chain model to simulated insurance claims data. The data are in the file 'Classification Scheme Data.csv' (posted on Blackboard).
The Mastodon Insurance Company studies a cohort of 600 drivers, who were all below 25 years old at the start of the study. In each year the number of claims made by every driver was noted.
Mastodon operates a classification scheme with six discount levels from level 0 (no discount, ie the driver pays full premium) to level 5 (50% discount), with a 10% increase in discount at each step. A policyholder who makes no claims in a year moves up one level (unless already at level 5); a policyholder who makes 1 or more claims moves down one level (unless already at level 0).
Before the study began, the drivers were categorised using variables such as age, gender, zip code, and miles driven per year. The categories reflect Mastodon's expectation of the level of risk associated with that driver:
• Category A - very low risk, ie the best drivers
• Category B - low risk
• Category C - medium risk
• Category D - high risk, i.e. the worst drivers
How much will you have when you retire
: You have just started a new job and plan to save $5,250 per year for 35 years until you retire. How much will you have when you retire
|
Applications of differentiation
: Applications of Differentiation - Should contain a good description and presentation about your applications with definitions.
|
What will be the balance in the allowance for wellington co
: Wellington Corp. what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?
|
What is the minimum makespan
: An automobile detailing shop has the following jobs waiting to be processed. All jobs (cars requiring detailing) must first be cleaned, then waxed.
|
Reflect mastodons expectation of the level of risk
: Before the study began, the drivers were categorised using variables such as age, gender, zip code, and miles driven per year. The categories reflect Mastodon.
|
What is the equivalent taxable yield
: Question - An investor is in the 32% tax bracket and holds municipal bonds with an 4% yield-to-maturity. What is the equivalent taxable yield
|
Ship small orders and large orders
: It's products are small and lightweight, so there isn't much difference between the cost to ship small orders and large orders. Shipment costs average $84 per.
|
What correct balance in the bank account at month end is
: A check for P 500 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is
|
What the correct balance of cash at may is
: What the correct balance of cash at May 31, 2020 is? In preparing its May 31, 2020 bank reconciliation, Catt Co. has the information available
|