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robtodd4614
robtodd4614
21.12.2019 • 
Mathematics

Acar insurance company has 2500 policy holders. the expected claim paid to a policy holder during a year is $1000 with a standard deviation of $900. what premium should the company charge to each policy holder to assure that, approximately, with probability 0.999, the premium income will cover the cost of the claims? use the central limit theorem to answer this question. you can use that φp3.0903q 0.999, where φ denotes the cdf of the standard normal distribution.

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