Question

Claims arrive to an insurance company according to a Poisson Process. The average number of claims...

Claims arrive to an insurance company according to a Poisson Process. The average number of claims reported each year is 120. Claim severities are independent and follow an Exponential distribution with an average of 160 TL. What is the expected value of total amount of claim severities in a month? ONLY ANSWER PLEASE QUICKKK

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Starting at noon, diners arrive at a restaurant according to a Poisson process at the rate...
Starting at noon, diners arrive at a restaurant according to a Poisson process at the rate of five customers per minute. The time each customer spends eating at the restaurant has an exponential distribution with mean 40 minutes, independent of other customers and independent of arrival times. Find the distribution, as well as the mean and variance, of the number of diners in the restaurant at 2 p.m.
Workers' compensation claims are reported according to a poisson process of with mean of 100 per...
Workers' compensation claims are reported according to a poisson process of with mean of 100 per month. The number of claims reported and the claim amounts are independently distributed. 2% of the claims exceed 30,000. Calculate the number of complete months of data that must be gathered to have at least a 90% chance of observing at least 3 claims each exceeding 30,000.
The number of insurance claims in a given period is a Poisson random variable. The policies...
The number of insurance claims in a given period is a Poisson random variable. The policies at a certain car insurance company cover expenses up to a maximum of $100 000. In this company, they observe that each claim they receive is, in average, for a value of $10 000, with standard deviation of $1000. In a month, they receive in average 35 claims. Is it likely that they will have to reimburse more than $385 000 in March 2019?
You are given that claims are reported according to a homogeneous Poisson process. Starting from time...
You are given that claims are reported according to a homogeneous Poisson process. Starting from time zero, the expected waiting time until the second claim is three hours. Calculate the standard deviation of the waiting time until the second claim.
B. Customers arrive at a restaurant according to a Poisson process. On the average, a customer...
B. Customers arrive at a restaurant according to a Poisson process. On the average, a customer arrives every half hour. (a) What is the probability that, 1 hour after opening, there at least one customer has arrived? (b) What is the probability that at least 2 customers have arrived?
An insurance company issues 1250 vision care insurance policies. The number of claims led by a...
An insurance company issues 1250 vision care insurance policies. The number of claims led by a policyholder under a vision care insurance policy during one year is a Poisson random variable with mean 2. Assume the numbers of claims led by distinct policyholders are independent of one another. What is the approximate probability that there is a total of between 2450 and 2600 claims during a one-year period? (A) 0.68 (B) 0.82 (C) 0.87 (D) 0.95 (E) 1.00
2. The arrival of insurance claims follows a Poisson distribution with a rate of 7.6 claims...
2. The arrival of insurance claims follows a Poisson distribution with a rate of 7.6 claims per hour. a) Find the probability that there are no claims during 10 minutes. b) Find the probability that there are at least two claims during 30 minutes. c) Find the probability that there are no more than one claim during 15 minutes. d) Find the expected number of claims during a period of 2 hours. (5)
The arrival of insurance claims follows a Poisson distribution with a rate of 7.6 claims per...
The arrival of insurance claims follows a Poisson distribution with a rate of 7.6 claims per hour. 1) Find the probability that there are no claims during 10 minutes 2) Find the probability that there are at least two claims during 30 minutes 3) Find the probability that there are no more than one claim during 15 minutes 4) Find the expected number of claims during a period of 2 hours
Process Activity Analysis for a Service Company Columbia Insurance Company has a process for making payments...
Process Activity Analysis for a Service Company Columbia Insurance Company has a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: Receiving claim $40,200 Adjusting claim 120,600 Paying claim 40,200 Total $201,000 This process includes only the cost of processing the claim payments, not the actual amount of the claim payments. The adjusting activity involves verifying and estimating the amount of the claim and is variable to...
Process Activity Analysis for a Service Company Statewide Insurance Company has a process for making payments...
Process Activity Analysis for a Service Company Statewide Insurance Company has a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: Receiving claim $30,400 Adjusting claim 212,800 Paying claim 60,800 Total $304,000 This process includes only the cost of processing the claim payments, not the actual amount of the claim payments. The adjusting activity involves verifying and estimating the amount of the claim and is variable to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT