Problem 34.7 z
For Company A there is a 60% chance that no claim is made during the com-
ing year. If one or more claims are made, the total claim amount is normally
distributed with mean 10,000 and standard deviation 2,000 .
For Company B there is a 70% chance that no claim is made during the com-
ing year. If one or more claims are made, the total claim amount is normally
distributed with mean 9,000 and standard deviation 2,000 .
Assuming that the total claim amounts of the two companies are indepen-
dent, what is the probability that, in the coming year, Company B's total
claim amount will exceed Company A's total claim amount?
Problem 34.7 zFor Company A there is a 60% chance that no claim is made during the com-ing year. If one or more claims are made, the total claim amount is normallydistributed with mean 10,000 and standard deviation 2,000 .For Company B there is a 70% chance that no claim is made during the com-ing year. If one or more claims are made, the total claim amount is normallydistributed with mean 9,000 and standard deviation 2,000 .Assuming that the total claim amounts of the two companies are indepen-dent, what is the probability that, in the coming year, Company B's totalclaim amount will exceed Company A's total claim amount?
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