Exam P Practice Problem 39 – Repair Costs for Collision Damage

Problem 39-A

Costs (in thousands) to repair damage to insured cars caused by collisions are independent random variables with common density function:

      \displaystyle f(x)=\frac{1}{50} \ (10-x) \ \ \ \ \ \ \ \ 0<x<10

An insurance coverage is available to cover the repair costs subject to a deductible of 2.

Five accidents with collision damages are expected in the comming year. What is the probability that the insurer needs to pay for the repair costs of exactly three of the accidents?

\text{ }

\text{ }

\text{ }

\text{ }

Problem 39-B

Home owners purchased insurance policies to protect against losses due to fire. The loss amounts (in thousands) are independent and are modeled by the probability distribution with the following density function.

      \displaystyle f(x)=\frac{3}{\text{2000,000}} \ (\text{10,000}-x^2) \ \ \ \ \ \ \ \ 0<x<100

Each of these policies has a deductible of 10.

The insurer examines five such losses. What is the probability that the insurer makes payment on more than three of the losses?

___________________________________________________________

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

___________________________________________________________

Answers

___________________________________________________________

\copyright \ 2013

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: