User Account

All Pages

What is the fair premium

Assignment Help Basic Computer Science
Reference no: EM131569000

1. An insurer sells a very large number of policies to people with the following loss distribution:

$100,000 with probability 0.005

$60,000 with probability 0.010

Loss =  $20,000 with probability 0.020

$10,000 with probability 0.05

$ 0 with probability 0.915

a. Assume claims are paid one year after premiums are received and that the interest rate is 6 percent. Calculate the discounted expected claim cost per policy.

b. Assume that the only administrative cost is the cost of processing an application, which equals $100 per policy, and that the fair profit loading is $150. What is the fair premium?

Reference no: EM131569000

Questions Cloud

Intellectual capital-management issues : In what specific ways could corporate culture drive a firm's market value? If you can, provide what you think is an example of corporate culture.
Why doesnt fortunato just admit to having insulted montresor : If it might have saved his life, why doesn't Fortunato just admit to having insulted Montresor
Please provide excel attachment with inputs : Assume that a 30-year, 6% coupon bond with semiannual payments has a par value of $1,000 and may be called in 5 years at a call price of $1,040.
Describe serving the needs of the child with disabilities : Your final thoughts should justify why this information is important in serving the needs of the child with disabilities
What is the fair premium : Assume that the only administrative cost is the cost of processing an application, which equals $100 per policy, and that the fair profit loading is $150.
Certificate of deposit that pays compounded interest : Find the future value of a $195,000 Certificate of Deposit that pays compounded interest every three months at the rate of 8% per year.
Examine the unique factorization of integers theorem : An alternative proof of the irrationality of v2 counts the number of 2's on the two sides of the equation 2n2 = m2.
Discus when the other dancer is the self : Discus When the Other Dancer Is the Self, Walker used specific memories from her past to display how she was feeling about herself at the time
Define integers theorem to deduce a contradiction : Use the proof technique illustrated in exercise to prove that if n is any positive integer that is not a perfect square, then vn is irrational.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  If the mission and vision is appropriate

Please do a field trip to your favorite business (preferably a store) and report in 2 pages the following:

  How much material is required for the patch

Sewing A patch in the shape of the region shown at the right is to be sewn onto a flag. If each unit in the coordinate system represents one foot, how much material is required for the patch?

  Show the output in a web application

Create a calculator that can take input from the user and show the output in a web application. You have to use the control structures to complete this requirement.

  Demonstrate a reduction from the former to the latter

demonstrate a reduction from the former to the latter.

  A new inventory control system is being implemented

He will be able to tell how many cases per shift each operator moves, and he plans to use this data to provide performance feedback that could result in pay increases or termination. He has asked you if there are any potential problems with using ..

  Creating a sales tracking application called the webco sales

In this project, you will be creating a sales tracking application called the Webco Sales Tracker, similar to commercial applications such as SalesForce. The system will use a simplified sales pipeline model that has three stages: qualifying, quot..

  Describe database elements primary key foreign key metadata

Describe a database and its various elements. Define Primary Key, foreign key, and metadata.

  Briefly discuss antivirus software and anti-spyware software

The topic of this week's project is related to next week's topic. Read the article ‘Personal Firewalls' at http://www.firewallguide.com/software.htm.

  What is one global issue

What is one global issue that you think needs to be addressed in the next 5 years, and why?

  Describe a set of two keyboard events to allow

Describe a set of two keyboard events to allow the user to zoom the camera in and out.

  Write program that illustrates sequence of constructor calls

Write a program that illustrates the sequence of constructor calls at the state of an object relative to RTTI during construction. Similarly illustrate destruction.

  Create an employee exception class

Write a Java application that assigns hourly wages to employees. Create an Employee Exception class whose constructor receives a String that consists of an employee ID and pay rate.

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