Exam MAS-I Practice Question 66

Study guide: Exam MAS-I

Twelve ground-up losses, all fully observed, are:

150,\ 300,\ 300,\ 450,\ 700,\ 1{,}000,\ 1{,}000,\ 1{,}400,\ 2{,}200,\ 3{,}100,\ 5{,}000,\ 8{,}200

Using the empirical distribution of these losses, estimate the loss elimination ratio of an ordinary deductible of 1,000.

• A) Less than 0.25
• B) At least 0.25, but less than 0.40
• C) At least 0.40, but less than 0.50
• D) At least 0.50, but less than 0.60
• E) At least 0.60

Answer this question and see the worked solution

Concepts tested

• Empirical Distribution
• Loss Elimination Ratio
• Limited Expected Value
• Deductible

More questions from this set

• Exam MAS-I Practice Question 65
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