A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 2 years ago
Insurance losses L in a given year have a lognormal distribution with L=e^X, where X is a normal random variable with mean 3.9 and standard deviation 0.8. If a $100 deductible and a $50 benefit are imposed, what is the probability the insurance company will pay the benefit limit given that a loss exceeds the deductible?
anonymous
 2 years ago
Insurance losses L in a given year have a lognormal distribution with L=e^X, where X is a normal random variable with mean 3.9 and standard deviation 0.8. If a $100 deductible and a $50 benefit are imposed, what is the probability the insurance company will pay the benefit limit given that a loss exceeds the deductible?

This Question is Closed

anonymous
 2 years ago
Best ResponseYou've already chosen the best response.0The question seems to be what is the probability that L > 150. ln L = X mean (ln L) = 3.9 s.d. (ln L) = 0.8 ln (150) = 5.0 find the normal distribution probability that 5.0 or more occurs when mean = 3.9 and s.d =0.8 this is same as zscore >= (5.03.9)/0.8 I must leave. Good luck.
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.