Question: 1. Obtain the empirical distribution function and the Nelson-Aalen estimate of the dis tribution function for the time to surrender using Data Set D1. Assume that the surrender time is known for those who die.
2. The data in Table 11.8are from Loss Distributions [45, p. 128]. It represents the total damage done by 35 hurricanes between the years 1949 and I980. The losses have been adjusted for inflation (using the Residential Construction Index) to be in 1981 dollars. The entries represent all hurricanes for which the trended loss was in excess of 5,000,000.
- The federal government is considering funding a program that would provide l 00% payment for all damages for any hurricane causing damage in excess of 5,000,000. You have been asked to make some preliminary estimates.
(a) Estimate the mean, standard deviation, coefficient of variation, and skewness for the population of hurricane losses.
(b) Estimate the first and second limited moments at 500,000,000.