A loss variable [math]L[/math] has a density function that is proportional to
The parameters [math]\theta [/math] and [math]\alpha [/math] are random with the following joint distribution
[math]\alpha = 1 [/math] | [math]\alpha = 2[/math] | |
[math]\theta = 500 [/math] | 0.25 | 0.35 |
[math]\theta = 1000 [/math] | 0.15 | 0.25 |
Determine the standard deviation of [math]L[/math] to the nearest integer.
- 298
- 1,088
- 1,220
- 1,279
- 1,565
- Created by Admin, Jun 02'22
The joint density function for the random variables [math]X,Y [/math] equals
for a constant [math]c[/math]. Determine the marginal density of [math]2Y^{1/2}[/math] given [math]X=1/2[/math].
-
[[math]] g(z)= \begin{cases} \frac{z^7}{6}, \sqrt{2} \lt z \lt 2^{3/4} \\ 0, \, \textrm{Otherwise} \end{cases} [[/math]]
- [[math]] g(z)= \begin{cases} \frac{64z^3}{3}, \frac{1}{2} \lt z \lt \frac{1}{\sqrt{2}} \\ 0, \, \textrm{Otherwise} \end{cases} [[/math]]
- [[math]] g(z)= \begin{cases} z^3, \sqrt{2} \lt z \lt 2^{3/4} \\ 0, \, \textrm{Otherwise} \end{cases} [[/math]]
- [[math]] g(z)= \begin{cases} \frac{255z^7}{1688}, \frac{1}{2} \lt z \lt \frac{1}{\sqrt{2}} \\ 0, \, \textrm{Otherwise} \end{cases} [[/math]]
- [[math]] g(z)= \begin{cases} \frac{2^{7/2}z^{5/2}}{5}, 0 \lt z \lt 2 \\ 0, \, \textrm{Otherwise} \end{cases} [[/math]]
- Created by Admin, Jun 02'22
The loss in year 1, [math]X[/math], has probability density function
A deductible equalling the loss in year 1 is applicable in year 2. If the loss in year 2, with deductible in effect, equals [math]Y[/math], determine the joint density function for [math]X,Y[/math].
- [[math]] \begin{align*} f_{X,Y}(x,y) &= \begin{cases} \frac{\alpha^2\theta^{\alpha}}{(x+\theta)(y + x + \theta)^{\alpha + 1}}, y \gt 0, x \gt 0 \\ 0, \, \textrm{Otherwise} \end{cases} \\ \end{align*} [[/math]]
- [[math]] \begin{align*} f_{X,Y}(x,y) &= \begin{cases} \frac{\alpha^2}{(x+\theta)(y + x + \theta)^{\alpha + 1}}, y \gt 0, x \gt 0 \\ 0, \, \textrm{Otherwise} \end{cases} \\ \end{align*} [[/math]]
- [[math]] \begin{align*} f_{X,Y}(x,y) &= \begin{cases} \frac{\alpha^2\theta^{\alpha}}{(y + x + \theta)^{\alpha + 1}}, y \gt 0, x \gt 0 \\ 0, \, \textrm{Otherwise} \end{cases} \\ \end{align*} [[/math]]
- [[math]] \begin{align*} f_{X,Y}(x,y) &= \begin{cases} \frac{\alpha^2\theta^{\alpha}}{(x+\theta)(y + x + \theta)^{\alpha}}, y \gt 0, x \gt 0 \\ 0, \, \textrm{Otherwise} \end{cases} \\ \end{align*} [[/math]]
- [[math]] \begin{align*} f_{X,Y}(x,y) &= \begin{cases} \frac{\alpha\theta^{\alpha}}{(x+\theta)(y + x + \theta)^{\alpha + 1}}, y \gt 0, x \gt 0 \\ 0, \, \textrm{Otherwise} \end{cases} \\ \end{align*} [[/math]]
- Created by Admin, Jun 02'22
You are given the following about a portfolio of risks:
- Risks are classified into three classes: 10% belong to class A, 30% belong to class B and 60% belong to class C.
- Losses for each risk are uniformly distributed on an interval [a,b] with a and b dependent on class:
Class | a | b |
---|---|---|
A | 0 | 1,500 |
B | 500 | 2,300 |
C | 100 | 1,000 |
Determine the expected loss for a randomly selected risk given that the loss is greater than 1,000.
- 1,065
- 1,238
- 1,313
- 1,587
- 1,597
- Created by Admin, Jun 02'22
You are given the following about a risk:
- Claim frequency and claim severity are independent
- Monthly claim frequency is Poisson distributed
- Claim severity is uniformly distributed.
If [math]S[/math] is an annual loss for the risk, determine the maximum of [math]\operatorname{E}[S^2]/\operatorname{E}[S]^2[/math].
- 1/2
- 3/4
- 1
- 4/3
- 5/3
- Created by Admin, Jun 02'22
Let [math]X[/math] and [math]Y[/math] be continuous random variables with joint density function
Calculate [math] \operatorname{P}[Y \lt X | X = 1/3][/math]
- 1/27
- 2/27
- 1/4
- 1/3
- 4/9
- Created by Admin, May 05'23
Once a fire is reported to a fire insurance company, the company makes an initial estimate, [math]X[/math], of the amount it will pay to the claimant for the fire loss. When the claim is finally settled, the company pays an amount, [math]Y[/math], to the claimant. The company has determined that [math]X[/math] and [math]Y[/math] have the joint density function
Given that the initial claim estimated by the company is 2, calculate the probability that the final settlement amount is between 1 and 3.
- 1/9
- 2/9
- 1/3
- 2/3
- 8/9
- Created by Admin, May 05'23
The stock prices of two companies at the end of any given year are modeled with random variables [math]X[/math] and [math]Y[/math] that follow a distribution with joint density function
Determine the conditional variance of [math]Y[/math] given that [math]X = x[/math].
- 1/12
- 7/6
- [math]x + 1/2 [/math]
- [math]x^2 - 1/6[/math]
- [math]x^2 +x + 1/3[/math]
- Created by Admin, May 05'23
An actuary determines that the annual number of tornadoes in counties P and Q are jointly distributed as follows:
Q= 0 | Q=1 | Q=2 | Q=3 | |
---|---|---|---|---|
P=0 | 0.12 | 0.06 | 0.05 | 0.02 |
P=1 | 0.13 | 0.15 | 0.12 | 0.03 |
P=2 | 0.05 | 0.15 | 0.10 | 0.02 |
Calculate the conditional variance of the annual number of tornadoes in county Q, given that there are no tornadoes in county P.
- 0.51
- 0.84
- 0.88
- 0.99
- 1.76
- Created by Admin, May 05'23
You are given the following information about [math]N[/math], the annual number of claims for a randomly selected insured:
Let [math]S[/math] denote the total annual claim amount for an insured. When [math]N = 1 [/math], [math]S[/math] is exponentially distributed with mean 5. When [math]N \gt 1 [/math], [math]S[/math] is exponentially distributed with mean 8.
Calculate [math]\operatorname{P}(4 \lt S \lt 8) [/math]
- 0.04
- 0.08
- 0.12
- 0.24
- 0.25
- Created by Admin, May 05'23