Thread: Exp. Distribution

An insurance company does not pay 75 percent of claims. For the remaining claims, they are exponentially distributed with a mean of 10. What is the expected claim payout.


thanks

Originally Posted by PensFan10

An insurance company does not pay 75 percent of claims. For the remaining claims, they are exponentially distributed with a mean of 10. What is the expected claim payout.


thanks

The distribution of the remaining 25% is irrelevant, only the mean:



CB