Step-by-step solution file
use the frequency and severity distributions given to answer the
use the frequency and severity distributions given to answer the following questions.
Frequency Distribution Severity Distribution
Losses Probability Loss Amount Probability
0 55% $400 30%
1 30% $700 50%
2 15% $1200 20%
a. Calculate the mean of the frequency distribution.
b. Determine the total loss distribution. Show all of the possible losses and their associated probabilities. Prove that the probabilities add to one.
c. Calculate the mean of the total loss distribution and show that it is equal to the mean of the severity distribution times the mean of the frequency distribution.
This question was answered on: Feb 21, 2020
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)
Need a similar solution fast, written anew from scratch? Place your own custom order
We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.