a. An insurer pays 80% of the aggregate loss in excess of the deductible of amount 10 up to a maximum payment of 35. Agg

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A An Insurer Pays 80 Of The Aggregate Loss In Excess Of The Deductible Of Amount 10 Up To A Maximum Payment Of 35 Agg 1 (131.41 KiB) Viewed 74 times

a. An insurer pays 80% of the aggregate loss in excess of the deductible of amount 10 up to a maximum payment of 35. Aggregate claim amounts S are integers and the following expected losses are known: E [(S – 10+] = 12.34, E [(S – 53)+] = 5.21 and E [(S – 54)+] = 3.96. Calculate the expected amount paid by the insurer. = b. A random loss, X, has the probability function given in the following table: X f(x) 0 0.15 1 0.20 2 0.22 3 0.12 4 0.10 5 0.05 6 0.05 7 0.05 8 0.05 9 0.01 You are given that E(X) 4 and El(X - d)+] = 2. Determine d.