Insurance Maximum Deductible

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Insurance Maximum Deductible

Question: An auto insurance policy has a deductible of 4 with a maximum claim payment of 5. Auto loss amounts follow an

An auto insurance policy has a deductible of 4 with a maximum claim payment of 5. Auto loss amounts follow an exponential distribution of 8. Given the occurrence of an auto loss, calculate the expected claim payment made by this policy.




Answer: Hi there!…Ok, I researched this for you…

It’s kinda long, so you better check it out yourself…

click here: http://www.myautoinsurancetips.com

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