CHAPTER 19

CHAPTER 19

19.1   SECTION 19.5

19.1

images

The three estimates are

images

19.2

images

images

The estimates are

images

Using the alternative method,

images

and the estimates are

images

19.3 images. With μ known to be 600, images, Z = 3/3.4091 = 0.8800. The premium is image.

19.4 (a)

images

(b) This follows from (19.6).

(c)

images

The middle term is zero ...

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