The total claim amount for a health insurance policy follows a distribution with density function 1 ( /1000) ( ) 1000 x fx e− = , x > 0. The premium for the policy is set at the expected total claim amount plus 100. If 100 policies are sold, calculate the approximate probability that the insurance company will have claims exceeding the premiums collected.

the approximate probability that the insurance company will have claims exceeding the premiums collected is

Step-by-step explanation:

The probability of the density function of the total claim amount for the health insurance policy  is given as :

Thus, the expected  total claim amount =  1000

The variance of the total claim amount

However; the premium for the policy is set at the expected total claim amount plus 100. i.e (1000+100) = 1100

To determine the approximate probability that the insurance company will have claims exceeding the premiums collected if 100 policies are sold; we have :

P(X > 1100 n )

where n = numbers of premium sold

Therefore: the approximate probability that the insurance company will have claims exceeding the premiums collected is

it is b)

hope this : )

step-by-step explanation:

according to the triangle sum theorem, all the angles in a triangle must add up to 180 degrees. if we know one angle is already 90, we do 180-90=90. the other 2 angles must add up to 90, exactly.

step-by-step explanation: