1. E

    Expected Value of Insurance Payment

    Hi everyone, it's me again... Here is my current struggle and what I've done. First, i found the expected value of the amount of damage which is ($1,410 + $284)/2 because it is uniform. This is $847. There is a $532 deductible, so the expected payment is $847-$532 = $315. The problem is this...
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    Solving a LogNormal Conditional expectation equation - Insurance

    Hi everyone, I am a newbie here and apologize if this post is in the wrong forum. I need help to solve the following LogNormal Conditional expectation equation for MuNew such that: (e^(MuNew + Sigma^2/2)*normcdf((-log(LowerLimit)+MuNew+Sigma^2)/Sigma)) / (1-logncdf(LowerLimit...