Question

2. Giving the following binomial probability distribution for the next year
No of accident Monetary loss Probability
0 Br. 0 0.40
1 5000 0.25
2 10,000 ?
3 15,000 0.12
4 20,000 0.05
5 30,000 0.03

Based on the above information determine
A, The average number of accidents per year
B, expected monetary loss per year
C, The maximum possible loss
D, the probability that the firm will suffer some loss

Answer 1

Answer:

1. What is the probability of an accident and no accident2. Construct the binomial prob. distnof the noof accidents.3. What is the prob. that the firm will incur some birr loss4. Find the mean & s. d of a noof accidents.5. Calculate the s. d. of total monetary loss6. Calculate the expected number of accidents.7. Calculate monetary loss/accident over the last four years8. Calculate the expected total annual monetary loss9. Calculate risk relative to the mean noof accidents, risk relative to mean monetary loss & risk relative to the noof exposure units.

Answer 2

Giving the following binomial probability distribution for the next year

No of accident Monetary loss Probability

0 Br. 0 0.40

1 5000 0.25

2 10,000 ?

3 15,000 0.12

4 20,000 0.05

5 30,000 0.03

Based on the above information determine

A, The average number of accidents per year

B, expected monetary loss per year

C, The maximum possible loss

D, the probability that the firm will suffer some loss

Answer:

Explanation: