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BraedynM2089
21.06.2021 •
Business
An insurer sells a one-year policy to many people with the following loss distributions:Size of loss Probability of loss50,000 0.00530,000 0.0110,000 0.025,000 0.050 0.915Assume:1) The fair premiums, the administrative expenses and the profit loading are all paid at the beginning of the year;2) The claims are paid one year later;3) The interest rate is 8%;4) The administrative expenses are assumed to be 10% of the fair premiums;5) The profit loading is assumed to be 5% of the expected claim costs.Find the fair premium for the policy.
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Ответ:
Explanation:
The table can be computed as follows:
Size of loss Probability of loss
50000 0.005
30000 0.01
10000 0.02
5000 0.05
0 0.915
The expected claim for the cost can be calculated by multiply each of the loss sizes with their corresponding probability loss.
i.e.
Following the given assumptions:
The fair premium(X) of the policy is calculated as follows:
0.9 X = 975.9259
X = 975.9259/0.9
Fair Premium (X) = 1084.36
Ответ:
When i see someone being sus
Explanation: