Approximate probability that the insurance company


The total claim amount for a health insurance policy follows a distribution with density function f(x) = (1/1000)e^(-x/1000) for x > 0. The premium for the policy is set at 100 over the expected total claim amount. If 100 policies are solds, what is the approximate probability that the insurance company will have claims exceeding the premiums collected?

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Approximate probability that the insurance company
Reference No:- TGS0730097

Expected delivery within 24 Hours