In an Agriculture Cultivating Land, the loss occurrence yearly, in Rupees and the Probability of loss occurrence also are given below. Find the mean amount of loss and Expected Value of Loss for 5 years: Year Loss in Rup

CS Professional · Insurance - Law & Practice · PYQS · June 2023
In an Agriculture Cultivating Land, the loss occurrence yearly, in Rupees and the Probability of loss occurrence also are given below. Find the mean amount of loss and Expected Value of Loss for 5 years: Year Loss in Rupees (₹) lakh Probability of Loss 1 6 0.05 2 28 0.18 3 30 0.28 4 15 0.35 5 58 0.14 Total 137 Lakh 1.00

Answer & Explanation:

Year Loss in Rupees (₹) lakhs Probability of Loss (Loss x Probability loss) 1 6 0.05 0.30 2 28 0.18 5.04 3 30 0.28 8.40 4 15 0.35 5.25 5 58 0.14 8.12 Total 137 1.00 27.11 a) Means amount of loss = 137 / 5 = 27.40 b) Expected amount of loss = 27.11

Topics: Risk Management

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