Solution-What is the expected amount daniel james will have

What is the expected amount daniel james will have

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Reference no: EM13905143

Daniel-James Insurance company will ensure an offshore Mobil Oil production platform against weather losses for one year. The president of Daniel-James estimates the following losses for that platform(in millions of dollars) with the accompanying probabilities:

Amount of Loss (in millions of dollars)	Probability
0	0.98
40	0.016
300	0.004

Question A: What is the expected amount Daniel james will have to pay to mobil in claims?

Question B: What is the likelihood that Daniel james will actually lose less than the expected amount?

Question C: Given that Daniel james suffers a loss, what is the likelihood that it is over 300 million?

Question D: Daniel james has set the annual premium at 2.0 million. does that seem like a fair premium? will it cover its risks?

Reference no: EM13905143

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What is the expected amount daniel james will have : Question A: What is the expected amount Daniel james will have to pay to mobil in claims? What is the likelihood that Daniel james will actually lose less than the expected amount?Given that Daniel james suffers a loss, what is the likelihood that it..

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What is the expected amount daniel james will have

Reference no: EM13905143

Reference no: EM13905143

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