I tried posting an attachment, however when I tried to view it I couldn't.

I will restate the problem so that it can be read properly.

A portfolio of independent policies has three classes of policies.

# in class = 100

prob of claim/policy

claim amount = 3

# in class = 200

prob of claim/policy = 0.02

claim amount = 1

# in class = 50

prob of claim/policy = 0.04

claim amount = 2

question:

if the relative security loading theta is set such that the probability of the aggregate claim amounts exceed the total premium is 0.05, determine theta using the normal approximation to the aggregate claims.

Thank you

I will restate the problem so that it can be read properly.

A portfolio of independent policies has three classes of policies.

__class 1__# in class = 100

prob of claim/policy

claim amount = 3

__class 2__# in class = 200

prob of claim/policy = 0.02

claim amount = 1

__class 3__# in class = 50

prob of claim/policy = 0.04

claim amount = 2

question:

if the relative security loading theta is set such that the probability of the aggregate claim amounts exceed the total premium is 0.05, determine theta using the normal approximation to the aggregate claims.

Thank you

## Comment