Mathematics, 18.03.2021 01:50 Chsleigh275
A car insurance company has 2500 policy holders. The expected claim paid to a policy holder during a year is $1000 with a standard deviation of $900. What premium should the company charge each policy holder to assure that with probability 0.999, the premium income will cover the cost of the claims? Compute the answer both with Chebyshev's inequality and with the CLT.
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A car insurance company has 2500 policy holders. The expected claim paid to a policy holder during a...
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