1. Math
  2. Statistics And Probability
  3. 2 25 points an insurance company sells an autoinsurance policy...

Question: 2 25 points an insurance company sells an autoinsurance policy...

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2. (2.5 Points) An insurance company sells an autoinsurance policy that covers losses incurred by a policyholder, subject to a deductible of $100. Losses (in $) incurred have cumulative distribution function (cdf) F(t) where F(t) 0, if t <0; and F(t) 1 - exp(-t/300), if t>O (a) What is the 95th percentile of losses incurred? (b) What is the 95th percentile of the actual losses that exceed the deductible?
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