Hello
One of my students is working on crop insurance.
Consider an insurance plan that makes indeminity payments denoted by I by
the rule.
I ( Indeminity ) = C - Y if Y <= C
= 0 if Y Y > C
Where Y ( say Crop Yield ) is a continuous a random variable
C is a positive constant ( 0 < C < 1 )
Can some one be kind enough to give the expression for
E ( I ) = [ C - E ( Y/ Y <= C ) ] F_y ( C)
if Y ~ Normal Distribution
Y ~ Lognormal Distribution
Y~ Gamma Distribution
Y ~ Beta Distribution
Where
E( I ) is expectation of I
E ( Y/ Y <= C ) is conditional Expectation of Y given Y <= C
F_y ( C ) Cummulative Probabity Distribution Function at Y
<=C
Thanks in advance
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