Agtuary
10-24-2002, 10:42 PM
A special purpose insurance company is set up to insure a single risk. The risk consists of a single claim.
The claim amount is distributed as Pr(x=100)=0.75, Pr(X=250)=0.25. The possible times of occurence, k=1,2,3,4,5, are equally likely. The time of occurence is independent of the claim amount.
The insurer's initial surplus is 50 and a premium of 50 arrives at the beginning of each of the first 5 periods.
Calculate the probability of ruin.
A) 0.10
B) 0.15
C) 0.20
D) 0.25
E) 0.30
The correct answer to come later.
The claim amount is distributed as Pr(x=100)=0.75, Pr(X=250)=0.25. The possible times of occurence, k=1,2,3,4,5, are equally likely. The time of occurence is independent of the claim amount.
The insurer's initial surplus is 50 and a premium of 50 arrives at the beginning of each of the first 5 periods.
Calculate the probability of ruin.
A) 0.10
B) 0.15
C) 0.20
D) 0.25
E) 0.30
The correct answer to come later.