Define a random variable " S " such that
S={(1 if claim is severe ),(0 if claim is non-severe ):}
A claim is classified as severe if the claim amount is R520 000 or more, otherwise it is classified as non-severe.
a. Calculate the value of S for each of the 150 claims.
b. Give the name of the family of distributions to which the variable S belongs.
c. Use the relative frequency definition of probability to determine the probability distribution of S.
1. Define a random variable "s" such that
if claim is severe if claim is non-severe
A claim is classified as severe if the claim amount is R520 000 or more, otherwise it is classified as non-severe.
a. Calculate the value of s for each of the 150 claims
b. Give the name of the family of distributions to which the variable S belongs.
c. Use the relative frequency definition of probability to determine the probability distribution of S