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Determination of Earthquake Insurance Premium Based on Great Physical and Economic Loss Using the Bayesian Method Rahman, Rezki Aulia; Subartini, Betty; Sukono, Sukono; Sampath, Sivaperumal
Operations Research: International Conference Series Vol. 4 No. 1 (2023): Operations Research International Conference Series (ORICS), March 2023
Publisher : Indonesian Operations Research Association (IORA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47194/orics.v4i1.207

Abstract

Indonesia is an area prone to earthquakes because it is traversed by the meeting point of 3 tectonic plates, namely: the Indo-Australian plate, the Eurasian plate and the Pacific plate. An earthquake is an event where the earth vibrates due to a sudden restraint of energy in the earth which is characterized by the breaking of rock layers in the earth's crust. Almost all regions in Indonesia are at risk of being exposed to earthquakes. To anticipate the risk of natural disasters, earthquakes are advised to join the insurance program provided by the insurance company. This study aims to determine earthquake insurance premiums based on large physical and economic losses. The method used is the Bayesian method. This method produces each estimated loss value which is then used to calculate the combined estimated loss value. After that, the combined estimated loss value is used to calculate the premium value. The result of this research is the premium which is calculated based on the principle of expected value and standard deviation principle. The premium resulting from the expected value principle is lower than the premium resulting from the standard deviation principle.
Analysis of Average Length of Schooling of Indonesian Citizens in the Future Using Markov Chains Ibrahim, Riza Adrian; Sampath, Sivaperumal
International Journal of Ethno-Sciences and Education Research Vol. 2 No. 4 (2022): International Journal of Ethno-Sciences and Education Research (IJEER)
Publisher : Research Collaboration Community (Rescollacom)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46336/ijeer.v2i4.391

Abstract

Based on data from the Central Bureau of Statistics of the Republic of Indonesia, the average length of schooling of Indonesian citizens is continuously increasing every year. This increase is predicted to continue in the future. However, it has yet to be discovered how the increasing rate in the average length of schooling will occur. Therefore, this study aims to analyze the increasing rate of the average length of schooling of Indonesian citizens in the future. The data used is the average length of schooling of Indonesian citizens from 2010 to 2021. The analytical method used is the discrete-time Markov chain. Furthermore, the states representing the increasing rate in the average length of schooling used are divided into two: the increasing rate in the average length of schooling that is smaller and larger than the average. Based on the analysis results, the probability that the increasing rate in Indonesian citizens' average length of schooling will be less than the average in the future is 0.4. In contrast, the probability that the increasing rate in Indonesian citizens' average length of schooling will be greater than the average in the future is 0.6. It indicates that Indonesian citizens will have a high education level in the future. The results can be used as the future education state projection of Indonesian citizens so that it can be accompanied by empowerment.