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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
4.  Daniel-James Insurance Company will insure an offshore  Mobil  Oil  production  plat- form against weather losses for one year. The president of Daniel-James estimates the following losses for that platform (in millions of dollars) with the accompanying probabilities:
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a.  What is the expected amount Daniel-James will have to pay to Mobil in claims?
b. What is the likelihood that Daniel-James will actually lose less than the expected amount?
c.  Given that Daniel-James suffers a loss, what is the likelihood that it is for $300 million?
d. Daniel-James has set the annual premium at $2.0 million. Does that seem like a fair premium?
Will it cover its  risk?
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