Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

# An insurance agent receives a bonus if the loss ration L on his dbuiness is less than 0.5 where L is the total losses, say X, divided by the total...

An insurance agent receives a bonus if the loss ration L on his dbuiness is less than 0.5 where L is the total losses, say X, divided by the total premiums, say T. The bonus equals (0.5 - L)(T/30) if L < 0.5 and equals zero otherwise. If X (in $100,000) has the p.d.f.x>1and if T (in$100,000 equals 3 determine the expected value of the bonus.

LEARN MORE EFFECTIVELY AND GET BETTER GRADES!