exercise:9ae4c4c807: Difference between revisions
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Calculate <math>Y</math>. | Calculate <math>Y</math>. | ||
<ul class="mw-excansopts"> | |||
<li>200,000</li> | |||
<li>210,000</li> | |||
<li>220,000</li> | |||
<li>230,000</li> | |||
<li>240,000</li> | |||
</ul> | |||
{{soacopyright | 2023}} | {{soacopyright | 2023}} | ||
Latest revision as of 13:21, 14 May 2023
The repair costs for boats in a marina have the following characteristics:
| Boat type | Number of boats | Probability that repair is needed | Mean of repair cost given a repair | Variance of repair cost given a repair |
| Power boats | 100 | 0.3 | 300 | 10,000 |
| Sailboats | 300 | 0.1 | 1000 | 400,000 |
| Luxury yachts | 50 | 0.6 | 5000 | 2,000,000 |
At most one repair is required per boat each year. Repair incidence and cost are mutually independent. The marina budgets an amount, [math]Y[/math], equal to the aggregate mean repair costs plus the standard deviation of the aggregate repair costs.
Calculate [math]Y[/math].
- 200,000
- 210,000
- 220,000
- 230,000
- 240,000
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.