Calculate the variance of the aggregate claims

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A portfolio of policies consists of one-year term term assurances (insuring against death within a 1 year period only) on 100 lives aged exactly 30 and 200 lives aged exactly 40. The probability of a claim during the year on any one of the lives is 0.0004 for the 30 year olds and 0.001 for the 40 year olds. lfthe sum assured (i.e. the amount payable in the event of the death of the insured) on a life aged x is uniformly distributed between 1,000(x - 10) and 1,000(x + 10), calculate the variance of the aggregate claims from this portfolio during the year (assuming that policies are independent with regard to claims).

Reference no: EM133120331

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