Risk Management and Insurance参考.ppt

Risk Management and Insurance (GE31103) Main Reference Harrington, S.E., Niehaus, G.R. (1999). Risk Management and Insurance. USA: Irwin/McGraw-Hill Problem No.1 Jack Sprat Wholesale Meats, Inc. is faced with the following probability distribution for losses due to meat spoilage: Possible Losses Probability $0------------------------.20 $100……………. .60 $1000……………. .20 Requirements What is Jack Sprat’s expected loss due to meat spoilage? What is the standard deviation of expected losses due to meat spoilage? Draw a probability distribution for Jack Sprat’s meat spoilage losses. Problem No.2 Trumpet Manufacturing owns real estate valued at $500,000. They estimate that their property losses have the following distribution: $500,000----------------------with probability .001 $100,000------------------------with probability .010 $25,000---------------------------with probability .050 $1,000-----------------------with probability .100 $0-------------------------------with probability .839 Requirements: What is the expected value of Trumpet Manufacturing’s losses? If insurance for this loss were available for a price of $3,000 per year, do you think that Trumpet would want to buy it? Why or why not? Problem no 3: Over the last 7 years, East Eagle Company has averaged 10,000 employees per year, 641 worker injuries (on the job) at an annual average cost of $134,369. Using this data?: Compute the probability of a worker suffering an on-the-job injury. Compute the average injury severity. Compute the expected loss per worker. Problem no 4: Identify the following group(s) or context are most likely positively correlated, negatively correlated, or uncorrelated. ?Variables or Exposure Unemployment amongst a group of factory workers The number of auto accidents, in a given year, for each resident of Omaha Problem no 4: Natural gas demand and winter temperatures in Minnesota Total damage from house fires in South Dakota and total damage fr