Calculate the expected loss to each person prior

Assignment Help Business Management

Reference no: EM1389110

Q. Suppose that Kate also Anne enter into a pooling arrangement. Assume that both women have the subsequent loss distributions also that losses are independent.

$50,000 with probability of 0.005
$20,000 with probability of 0.01
$10,000 with probability of 0.02
$0 with probability of 0.965

a. Write out the possible outcomes also the probability of each outcome for Kate also Anne after they enter into a pooling arrangement. That is, writ out the probability distribution for each of the women after they enter into a pooling arrangement.

b. Calculate the expected loss to each person prior to also subsequent to entering into a pooling arrangement.

c. Illustrate what happens to the standard deviation of the distribution of losses to each individual subsequent to the pooling arrangement?

Reference no: EM1389110

Questions Cloud

Definition of consumer price index : Consumer Price Index is: a. a weighted aggregate price index where the weight for each item is its current-period quantity. b. a weighted aggregate price index where the weight for each item is its last-period quantity. c. an index that is designed t..

What is the reading of each scale with a woman : A 55.0 kg circus performer oscillates up and down at the end of a long elastic rope at a rate of once every 8s. The elastic rope obeys Hooke's Law. By how much is rope extended beyond its unloaded length while the performer hangs at rest?

Considering starting an internet-based business : Assume that you are considering starting an Internet-based business. Would you prefer to be a first, second or later mover in the market

Sequence retrieval system : The author writes, Contestable results from SRS can also take place because information gathering in SRS entails a lot of time and labor.

Calculate the expected loss to each person prior : Calculate the expected loss to each person prior to also subsequent to entering into a pooling arrangement. Illustrate what happens to the standard deviation of the distribution of losses to each individual subsequent to the pooling arrangement?

Estimate the collective gonad received : A population of fifty-thousand around a nuclear facility receives an average wholebody dose of 0.5 rad as a result of an accidental release of radionuclides.

Write maximum and minimum rotational latency of disk : Write down the maximum and minimum rotational latency of this disk? Determine the average rotational latency of this disk?

Implementation of such systems have a high rate : Implementation of such systems have a high rate of failure and often after such systems are installed the results may not be as desired.

What is the direction of the force on the proton : Two objects attract each other gravitationally with a force of 2.5 x10-10 N while they are 0.33 m apart. Their total mass is 4-kg. Find out their individual masses.

User Account

All Pages