00:01
Hello students, here the insurance cover amount, insurance cover amount is equal to 15 ,000 and deductible amount, deductible amount is equal to 1000 and the amount insurance company has to pay in case of total loss to car, total loss to car at that time the company has to pay 14 ,000 and the probability of total loss to car is 0 .02, let me take that as p.
00:59
So, the expected claim in case of total loss, total loss is equal to probability of total loss into amount of total loss that is n into p we usually take.
01:19
So, here probability of total loss is 0 .02 into amount of total loss is 14 ,000, we will get this is equal to 280.
01:34
The amount of damage in case of partial damage to car is x and deductible amount is 1000, we have taken it.
01:49
So, amount that insurance company has to pay, amount that insurance company, company has to pay, has to pay is maximum of x minus 1 comma 0 in this is in thousands.
02:17
So, let me take that expected value of maximum x minus 1 comma 0 in thousand as e of y.
02:41
So, now e of y is equal to integration from 1 to 15 x minus 1 fx into dx.
02:57
So, this is equal to integration from 1 to 15 x minus 1 into 0 .5003 into e power minus x by 2 into dx...