What is the new ler

Assignment Help Mathematics
Reference no: EM131001289

1. Suppose that the severity distribution changes from X to (1 + r)X due to inflation.

(a) Show that if the deductible d is increased to (1 + r)d, the LER is unchanged. What happens to the LER if d is unchanged?

(b) Suppose that X is exponentially distributed and for a certain value of d the LER is 0.3. If r = 0.10 and d is unchanged, what is the new LER?

2. Suppose that N is a continuous mixture of Poisson(λ) distributions, where λ ∼γ (2, 1) and X takes the value 1 with probability 0.6 and 2 with probability 0.4. If fS(10) = c and fS(11) = d, find a formula for fS(12) in terms of c and d.

Reference no: EM131001289

Questions Cloud

Descriptors are provided below for six situations involving : Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2011, and the principal and interest are due at maturity
Discuss safety and the sweetener that you have selected : Discuss safety and the sweetener that you have selected.
Global warming increases food shocks threats : Describe two (2) techniques required to study ecosystems then provide an example of each technique. Suggest two (2) advantages and (2) disadvantages for each of your chosen techniques.
Calculate the receivables turnover ratio : In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain's 2012 income statement?
What is the new ler : Suppose that X is exponentially distributed and for a certain value of d the LER is 0.3. If r = 0.10 and d is unchanged, what is the new LER?
Problem regarding the central location of the distribution : Plot the pdf for this random variable. Compute its mean and indicate its value on the plot along with the value given for the median. Which seems to be more "representative" of the central location of the distribution, the mean or the median?
What is the magnetic field strength : A patient with a pacemaker is mistakenly being scanned for an MRI image. A 10.0 cm long section of pacemaker wire moves at a speed of 10.7 cm/s perpendicular to the MRI unit's magnetic field and a 21.0 mV Hall voltage is induced. What is the magn..
What is the speed of the bob at this point : A pendulum of length L with a bob of mass m swings back and forth. At the low point of its motion (point Q), the tension in the string is (3/2)mg. What is the speed of the bob at this point?
What amount would msi report as cash : Prepare a bank reconciliation for the MSI checking account at December 31, 2011. You will have to compute the balance per books.

Reviews

Write a Review

Mathematics Questions & Answers

  In how many seconds will it hit the ground

A projectile is launched from the ground. The height h in feet of the projectile , t seconds ater being launched, is given by the formula . After the projectile is launched, in how many seconds will it hit the ground?

  Find the dool little lu decomposition ofthe matrix

Find the dool little LU decomposition ofthe matrix without doing any row interchanges. Use your LU decomposition to calculate the determinant of A and the third columnof A-1.

  Solving for geometry word problems

A certain wheel has a diameter of 98 inches. If that wheel travels for 108 revolutions, then. How many years has it gone? (use 22/7 for pi)

  Rate of change of area of isoceles triangle

The included angle of the two sides of contant equal length s of an isosceles triangle is Z degrees. Show that the area of the triangle is given by A = 1/2s^2 sin Z

  Solve utilizing the five-step problem-solving process

Solve using the five-step problem-solving process. Show all steps necessary to arrive at your solution. If an object is propelled upward from ground level with an initial velocity of 92.5 feet per second, its height h in feet t seconds later

  What is the marginal distribution of y2

show that the marginal distribution of Y1 is normal with mean u1 and variance (o1)^2

  Determine the probability that from random sample of 6

checkmarts records show that 58 of their customers pay only the minimum amount on their credit card each month.a. what

  Write the taylor series expansion

Estimate the error in evaluating ln(3/2) by using only the first five nonzero terms of the series in part a). Justify your answer.

  What are the detentions

you are designing a basketball court to put in your backyard and you are given 975 feet of fencing. What are the detentions that would maximize the area of the court?

  Find the multiple linear regression

Find the multiple linear regression.

  Find what is the mass of the water in a hemispherical tank

What is the mass of the water in a hemispherical tank with a radius of 5 meters? Illustrate your calculations with a plot of the tank. (Hint: assume hemisphere is lower hemisphere of sphere of radius 5 centered at the origin in spherical coordinat..

  Use compatible numbers to estimate the weight of the second

What is the total weight of two boxes us 147 pounds. The first box weighs 52 pounds. Use compatible numbers to estimate the weight of the second box.

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!

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