XYZ Insurer has economic capital of $150,00. It has just collected $450,000 in premiumsand projects total loss obligations (liabilities) according to the following table.ProjectedTotal Losses$200,000S300,000$400,000$500,000S600,000S700,000SS00,000$900.000Probability ofTotal Losses1020352010.03015005What is the probability that XYZ Insurer will not have enough assets and capital tomeet its loss obligations?3%5%01:49

Name: XYZ Insurer has economic capital of $150,00. It has just collected $4
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Description: XYZ Insurer has economic capital of $150,00. It has just collected $450,000 in premiumsand projects total loss obligations (liabilities) according to the following table.ProjectedTotal Losses$200,000S300,000$400,000$500,000S600,000S700,000SS00,000$9

Solution : Given : Total assets = $15000+$450000 = $465000 Let, X :…

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Probability

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?

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 First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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