Two types of insurance claims are made to an insurance company. For each type, the number of claims follows a Poisson distribution and the amount of each claim is uniformly distributed as follows:...


Two types of insurance claims are made to an insurance company. For each type, the number of<br>claims follows a Poisson distribution and the amount of each claim is uniformly distributed as<br>follows:<br>Type of Claim<br>I<br>Range of each Claim amount<br>(0, 1)<br>(0, 5)<br>Poisson parameter (^.)<br>12<br>II<br>4<br>The numbers of claims of the two types are independent. The claim amounts and claim numbers<br>are independent. Calculate the normal approximation to the probability that the total of claim<br>amounts exceeds 18.<br>

Extracted text: Two types of insurance claims are made to an insurance company. For each type, the number of claims follows a Poisson distribution and the amount of each claim is uniformly distributed as follows: Type of Claim I Range of each Claim amount (0, 1) (0, 5) Poisson parameter (^.) 12 II 4 The numbers of claims of the two types are independent. The claim amounts and claim numbers are independent. Calculate the normal approximation to the probability that the total of claim amounts exceeds 18.

Jun 09, 2022
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