Assignment-MATH4281-W18-2.pdf - Adobe Acrobat Reader DC File Edit View Window He

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Assignment-MATH4281-W18-2.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools Assignment-MATH.. X Sign In as% Question 1. (15 markie) Export PDF An insurace portfolio has the following characteristics: Adobe Export PDF Convert PDF Files to Word or Excel Online PIMF of 2 0.4 0.3 0.3 0.6 2 0.4 Select PDF File Assignmen...-W18-2.pdf × Number of claims, N, and claim amounts, X, are mutually independent. Comput,e the conditional probability that the average claim size (i.e. ) exceede the expected claim size (i.e. EX), given that there i a least one elaim Convert to Microsoft Word (doo) v Document Language English (U.S) Change Convert Create PDF Store and share files in the Document Cloud Learn More ENG 827 PM O Type here to search ^ D US 2018-01-31

Explanation / Answer

Now we have to figure out that P(SN >E(X)

where given N>1

Now let us

take x =3,P(x) = 0.5

E(X) = Sx P(X=x)

= 3/0.5(S)

where S/N = 2

S = 2 * 0.3

= 0.6

Now we get

S value

E(X) =3/0.5(0.6)

= 3.6

E(X) = 3.6

S/N = 0.6/0.3

= 0.2

Therefore

P( S/N >E(X)) = P(0.2>3.6)

  

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