7. Given : (i) Losses follow exponential distribution with mean 1000. (ii) There is a deductible...

 

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7. Given : (i) Losses follow exponential distribution with mean 1000. (ii) There is a deductible of 500. each (i) 10 losses are expected to exceed the deductible / year. A. Determine the amount to which the deductible would have to be raised to double the LER. B. Determine the expected number of losses that would exceed the deductible each year if all loss amovents. are doubled, but the deductible remained at 500. 7. Given : (i) Losses follow exponential distribution with mean 1000. (ii) There is a deductible of 500. each (i) 10 losses are expected to exceed the deductible / year. A. Determine the amount to which the deductible would have to be raised to double the LER. B. Determine the expected number of losses that would exceed the deductible each year if all loss amovents. are doubled, but the deductible remained at 500.

Answer rating: 100% (QA)

A The deductible amount would have to be raised to 1500 in order to double the LER B If all loss amo... View the full answer