Covariance of the two payment times


Assume the remaining lifetimes of the husband and wife are independently and uniformly distributed on the interval [0, 40]. An insurance company presents two products to married couples:

One which pays when the husband dies.

One which pays when both the husband and wife have died.

Compute the covariance of the two payment times.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Covariance of the two payment times
Reference No:- TGS0846620

Expected delivery within 24 Hours