Answered You can hire a professional tutor to get the answer.
QUESTION
ependence of risks matter in the examples of insurance? what would happen to premiums if the probabilities of house burning were postively correlated?...
Why does the assumption of independence of risks matter in the examples of insurance? what would happen to premiums if the probabilities of house burning were postively correlated? Can you think of a situation where they might be negatively correlated?
