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Statistics-An insurance company has N = 10000 clients. Each of them can

Question # 00125063
Subject: Business
Topic: General Business
Due on: 11/26/2015
Posted On: 10/27/2015 12:50 PM

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An insurance company has N = 10000 clients. Each of them can get into a car accident with probability 10% , independently of each other. If a client gets into a car accident, the amount of the claim is 1000 dollars. The company charges each of them a premium x . Calculate the

minimal amount of x so that the company gets bankrupt only with probability 5%.

Now , simulate the outcome in python by generating N Bernoulli random variables with prob- ability of success 10% . See whether the company went bankrupt (that is, the total amount of claims exceeded the amount of premiums collected). Simulate this 1000 times and find in how many simulations the company went bankrupt.

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Statistics-An insurance company has N = 10000 clients. Each of them can

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