Revision as of 13:43, 14 May 2023 by Admin (Created page with "'''Key: D''' We have the following table: {| class="table table-bordered" |- ! Item !! Dist !!E() !! Var() |- | Number claims || NB(16,6) || 16(6) = 96 ||16(6)(7) = 672 |- |...")
Exercise
ABy Admin
May 14'23
Answer
Key: D
We have the following table:
| Item | Dist | E() | Var() |
|---|---|---|---|
| Number claims | NB(16,6) | 16(6) = 96 | 16(6)(7) = 672 |
| Claim amounts | U(0,8) | (8 − 0)2 / 12 = 5.33 | |
| Aggregate | 4(96) = 384 | 96(5.33) + 672(42 ) = 11, 264 |
Premium = [math]\operatorname{E}(S ) + 1.645 \sqrt{\operatorname{E}[S )} = 384 + 1.645 \sqrt{11,264} = 559 [/math]
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.