Exam P Practice Problem 61 – Claim Size of Auto Insurance Policies

Problem 61-A

An insurance company has a block of auto insurance policies. The claim size (in thousands) for a policy in this block of auto insurance policies is modeled by the random variable Y=X^2 where X has an exponential distribution with mean 1.25.

What is the expected claim size for such an auto insurance policy?

      \displaystyle (A) \ \ \ \ \ \ \ \ \ \ \ \ \ 1250

      \displaystyle (B) \ \ \ \ \ \ \ \ \ \ \ \ \ 1563

      \displaystyle (C) \ \ \ \ \ \ \ \ \ \ \ \ \ 2500

      \displaystyle (D) \ \ \ \ \ \ \ \ \ \ \ \ \ 2755

      \displaystyle (E) \ \ \ \ \ \ \ \ \ \ \ \ \ 3125

\text{ }

\text{ }

\text{ }

\text{ }

Problem 61-B

An insurance company has a block of auto insurance policies. The claim size (in thousands) for a policy in this block of auto insurance policies is modeled by the random variable Y=X^2 where X has an exponential distribution with mean 1.6.

What is the standard deviation of the claim size for such an auto insurance policy?

      \displaystyle (A) \ \ \ \ \ \ \ \ \ \ \ \ \ 1600

      \displaystyle (B) \ \ \ \ \ \ \ \ \ \ \ \ \ 5120

      \displaystyle (C) \ \ \ \ \ \ \ \ \ \ \ \ \ 9756.43

      \displaystyle (D) \ \ \ \ \ \ \ \ \ \ \ \ \ 11448.67

      \displaystyle (E) \ \ \ \ \ \ \ \ \ \ \ \ \ 12541.39

___________________________________________________

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

___________________________________________________

Answers

___________________________________________________

\copyright \ 2013

Advertisements

One response

  1. seriously, no worked solutions?

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: