Function of an appropriate random variable

Assignment Help Operation Management

Reference no: EM131269849

Suppose you work for an insurance company. 3,000,000 people in Georgia took out car insurance. Suppose in each year, that any of the given 3,000,000 people involves in a car accidence with probability 10−5 , independent of all else. Suppose that any one involved in a car accidence may or may not claim, and say that each of them claim to your company with probability 0.8, independent of all else. Suppose you pay each claimed case 1000 dollars.

Express the total amount of money M your company must pay out as a function of an appropriate random variable, and then compute approximately the probabilty that M = 5000.

Reference no: EM131269849

Questions Cloud

How many kanban containers would jewel require : The Jewel Golf Club Company, which recently began using a Kanban system, has had problems with high inventory levels of one of the handle grips used to make several versions of its clubs. Daily demand for the grip is 3000 units, average waiting ti..

Discuss the results of your internal analysis : Integrated your external and internal company analysis, completing a formal company SWOT - Perform research, and complete an industry analysis using each of the Five Forces in Porter's model. Support your analysis with current financial, operationa..

Which is the better investment : If both the bond and the continuous income stream earn 3.75%, compounded continuously, which is the better investment?

Function of an appropriate random variable : Suppose you work for an insurance company. 3,000,000 people in Georgia took out car insurance. Suppose in each year, that any of the given 3,000,000 people involves in a car accidence with probability 10−5 , independent of all else. Express the total..

Future value as the continuous income stream : If the continuous income stream earns 6.95%, compounded continuously, what single deposit into an account earning the same interest rate will produce the same future value as the continuous income stream?

What is the marketing value in having a database : What is the marketing value in having a database with customer information? How can this data be used to create relationships with customers? Provide an example of a company you believe is using customer data well in their marketing efforts.

Describe the planned approach as it applies to the object : Describe the planned approach as it applies to the object of the evaluation (selected from text, Chapters 5-8). Explain your rationale and provide research support for the approach.

Describe why physical database design is necessary : Explain why the need to perform joins is an important factor affecting application and database performance.

User Account

All Pages