Find the variance of the insurer payment per loss

Assignment Help Financial Management

Reference no: EM131530951

A loss random variable X has a uniform distribution on the interval 0, 1000]. Find the variance of the insurer payment per loss if there is a deductible of 100 and a policy limit of 800. (The policy limit is applied before the deductible, i.e. the most the company will pay will be $700 = $800 limit - $100 deductible.)

Reference no: EM131530951

Questions Cloud

Explain how goal ambiguity make policy design more difficult : Discussion "The Difficulties of Writing Policy"- how ambiguity helps promote policy making and how goal ambiguity makes makes policy design more difficult.

Draw a map to illustrate the above data structure : A 68020-based single-board microprocessor system is to be used to keep track of items in a shop. The shop sells up to N items.

Explain what the given program does : Explain what the following 68000 program does. Use the 68000 simulator to test your observations.

Develop revenue policy aligned with community values : How vital is it to develop revenue policy aligned with community values? Issues and challenges in leading budget and fiscal reform in government.

Find the variance of the insurer payment per loss : Find the variance of the insurer payment per loss if there is a deductible of 100 and a policy limit of 800.

Summarize the point of view of the host on each topic : Summarize the point of view of the host on each topic and provide your position on the topic as it relates to the position of the host.

If a bonds price increases its coupon rate : If a bond's price increases its coupon rate will...If a bond sells at a discount which of the following is true?

How would you build a well-diversified portfolio : How would you build a well-diversified portfolio? How many individual investments does it take?

Create portfolio with an expected return : If your goal is to create a portfolio with an expected return of 11.2 percent, how much money will you invest in Stock X?

User Account

All Pages