XYZ Insurer has economic capital of $150,00. It has just collected $450,000 in premiums and projects total loss obligations (liabilities) according to the following table. Projected Total Losses $200,000 S300,000 $400,000 $500.000 $600,000 S700,000 SS00,000 $900.000 Probability of Total Losses 10 20 35 20 10 03 015 005 What is the probability that XYZ Insurer will not have enough assets and capital to meet its loss obligations?

A company offers a 2-year warranty on a product for $35. Replacing the product to the consumer who purchases the warranty costs the company $200. The quality control division estimates that 0.25% of their products will fail within the fırst 2 years. What is the company's expected value for each warranty sold?

You are working as a portfolio manager for an Asset Management firm. The following table provides the annual returns expected under various market conditions or regime. Each regime has the probability given in the table (i.e. P(Pandemic) = 0.05 and P(Recession) = 0.20, and so on)...Please answer the following questions from the data in the table:

A particular "homogeneous" travel accident insurance portfolio consists of 5,000 policies issued for a period of one year. The probability that a randomly chosen insured will require the reimbursement of her/his losses is 3%, and if a loss event has occurred, then the amount of the loss is a uniform r.v. § ranging from $0 to $5,000. Amounts of the payoffs for different policies are independent. Finish the following Questions: 1-8. Numerical answers below may be rounded. Advices: 1) It make sense to set $100 as a unit of money and recalculate the answer at the very end of calculations. (b-a) ² 12 2) Recollect that for a distribution uniform on [a,b], the mean is and the variance is a+b 2 2 3) When calculating, do it accurately (certainly you can use calculators); just in case, double check.