This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A home insurance company anticipates the following pattern of claims, based on historical data. What ... (Read 50 times)

Themember4

  • Hero Member
  • *****
  • Posts: 538
on: Apr 25, 2021

Question 1

A company will earn 10% returns in a poor economy, 15% returns in a normal economy, and 25% returns in a booming economy. What is the standard deviation if there is a 25% chance of a poor economy and a 25% chance of a booming economy?
◦ 10.83%
◦ 5.45%
◦ 6.12%
◦ 11.18%
◦ 4.91%

Question 2

A home insurance company anticipates the following pattern of claims, based on historical data. What is the standard deviation of claims?

Type of ClaimSize of ClaimNumber of Claims out of 
10,000 Policy Holders		Probability
1$200,00010.0001
2$50,000100.001
3$2,0002000.02
4$09,7890.9789

◦ $2,562.79
◦ $6,567,900
◦ $2,000
◦ $110
◦ $3,753.52
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Themember4 on Apr 25, 2021

izzat

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


Themember4

  • Member
  • Posts: 538
Reply 2 on: Apr 25, 2021
Excellent

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

The material safety data sheet (MSDS) for sulfuric acid showing the detailed technical information ... The material safety data sheet (MSDS) for sulfuric acid showing the detailed technical information ...
The annual pattern of rings changes with ocean temperature and coral health The annual pattern of rings changes with ocean temperature and coral health
Nursing: A Concept-Based Approach to Learning, Volume I Nursing: A Concept-Based Approach to Learning, Volume I
Typical pattern of the stages of labour for first births and subsequent births Typical pattern of the stages of labour for first births and subsequent births
Satellite data on primary productivity in the equatorial Pacific Ocean Satellite data on primary productivity in the equatorial Pacific Ocean
The X/A ratio determines gene transcription and transcript splicing pattern The X/A ratio determines gene transcription and transcript splicing pattern
Video: Inflammation Animation

For a complete list of videos, visit our video library