Print

---

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

      mail me
    [log in to unmask]






%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%