In deciding upon the appropriate premium to charge, insurance companies sometimes use the exponential principle, defined as follows. With X as the random amount that it will have to pay in claims, the premium charged by the insurance company is P = 1/a ln(E(e aX )) where a is some specified positive constant. Find P when X is exponential random variable with parameter lambda, and a = alpha lambda, where 0 < alpha < 1.

Respuesta :

Answer:

Step-by-step explanation:

The application of probability distribution function is employed in solving the question. The detailed analysis and step by step approach is as shown in the attached file.

Ver imagen olumidechemeng
ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE