An automobile collision insurance policy reimburses repair costs subject to the deductible of 250 per accident. In the event of accident, repair costs can be modeled by the uniform random variable on interval (0,1500).
(a). Find out the expected value of the claim payment per loss random variable.
(b). Find out the expected value of the claim payment per payment random variable.
(c). Find out the expected value of the claim payment per payment random variable if the deductible is eliminated.
(d). Assume the insurer eliminates the deductible. By what percentage would the number of accidents resulting in repair costs greater than the deductible be expected to increase?
(e). If the insurer eliminates the deductible, what is the expected percent increase in the amount paid to policyholders?