Expected number of claims per year

Assignment Help Finance Basics
Reference no: EM131214205

An insurance company has determined that the number of motor insurance claims per customer per year has the following probability distribution:

No. of claims (x)

0

1

2

3

4

>4

P(x)

?

0.24

0.11

0.03

0.01

0

(a)   What is the probability that a customer makes no claims during the year?

(b) If the company has five thousand customers, what is the expected number of claims per year?

An insurance company has determined that the number of motor insurance claims per customer per year has the following probability distribution:

No. of claims (x)

0

1

2

3

4

>4

P(x)

?

0.24

0.11

0.03

0.01

0

(a)   What is the probability that a customer makes no claims during the year?

(b) If the company has five thousand customers, what is the expected number of claims per year?

Reference no: EM131214205

Determine the price and number of shares outstanding of each

Determine the price and number of shares outstanding of each stock at the beginning of Week 1 (time t), and also at the end of Week 4 (time t+1). It may help to put this dat

What is the firm''s earnings growth rate

The report also stated that the firm's return on equity is 14 percent. Lowery retains 70 percent of its earnings. What is the firm's earnings growth rate? What will next yea

Concepts of net present value and shareholder wealth

The market response to this action was immediately positive, with the stock price of USX increasing $2.37 to close at $31.25 on the day of the announcement. Why do you think

Calculate amount of the gain

An accountant, whose entire practice consists of real estate agents and real estate developers, bought, on the advice of a client, a parcel of raw land 2-years ago for $50,000

What price would you expect rylans stock to sell

Rylan Industries is expected to pay a dividend of $5.50 year for the next four years. if the current price of Rylan stock is $32.53, and Rylan's equity cost of capital is 13

What should the expected ppp

Chase Econometrics has just published projected inflation rates for the United States and Euro-zone for the next five years. U.S. inflation is expected to be 2% per year, an

What is the operating cash flow for year 5

The project requires $36,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. The salvage value of

Examine the key reasons why a business may not want to hold

Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two examples that illustrate the consequences of either situation

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd