Mathematics, 15.02.2022 01:00 tammydbrooks43
V = 220L + 451H
The sample variance, V, in the expected total premiums of L low-risk beneficiaries and H high-risk beneficiaries based on an underwriter's premium allocation is given by the equation above. The values of L and H are independent. What is the best interpretation of 451H as shown in the above equation?
A. There are 451H high-risk
beneficiaries.
B. The total variance due to high-risk beneficiaries is 451H
C. The variance in premiums for a high-risk beneficiary is 451H.
D. The expected total premiums for high-risk bencficiaries is 451H.
Answers: 3
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V = 220L + 451H
The sample variance, V, in the expected total premiums of L low-risk beneficiaries...
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