Over a five-year period, Insurance Company X provides coverage for 80,000 homes, while Insurance Company Y covers only 40,000 homes. In both cases, 1 percent of the homeowners file claims (resulting in claim frequency of company X of 800 and of company Y of 400). If the variance for Company X is .4 while the variance for Company Y is .1, use the coefficient of variation to determine which insurer faces the greatest risk and by how much: a. Insurer Y has a 50 percent greater risk than insurer X b. Insurer Y has a 25 percent greater risk than insurer X c. Insurer X has a 25 percent greater risk than insurer Y d. Insurer X has a 50 percent greater risk than insurer Y e. The two insurers have the same level of risk

Over a five-year period, Insurance Company X provides coverage for 80,000 homes, while Insurance Company Y covers only 40,000 homes. In both cases, 1 percent of the homeowners file claims (resulting in claim frequency of company X of 800 and of company Y of 400). If the variance for Company X is .4 while the variance for Company Y is .1, use the coefficient of variation to determine which insurer faces the greatest risk and by how much: a. Insurer Y has a 50 percent greater risk than insurer X b. Insurer Y has a 25 percent greater risk than insurer X c. Insurer X has a 25 percent greater risk than insurer Y d. Insurer X has a 50 percent greater risk than insurer Y e. The two insurers have the same level of risk

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 13P: The values of Alabama building contracts (in millions of dollars) for a 12-month period are as...

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