Suppose claim amount for an insurance company follows a discrete distribution Pe 0.5 100 0.4 200 0.05 500 0.04 1000 0.005 10000 0.005 Find the cash values which company should hold to be able to cover claims completely with 95% and 99% confidence levels. Calculate Tail risks TVARO.01

Suppose claim amount for an insurance company follows a discrete distribution Pe 0.5 100 0.4 200 0.05 500 0.04 1000 0.005 10000 0.005 Find the cash values which company should hold to be able to cover claims completely with 95% and 99% confidence levels. Calculate Tail risks TVARO.01

Name: Suppose claim amount for an insurance company follows a discretedistr
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Description: Suppose claim amount for an insurance company follows a discretedistributionР.0.51000.42000.055000.0410000.00510000 0.005Find the cash values which company should hold to be able to cover claimscompletely with 95% and 99% confidence levels. Calculat

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter12: Probability

Section12.4: Discrete Random Variables; Applications To Decision Making

Problem 22E

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