A is exposed to the risk of his motorbike being stolen. His loss distribution is as...

 

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A is exposed to the risk of his motorbike being stolen. His loss distribution is as shown below: Loss Distribution A Possible Outcome RM Probability 0.8 0.2 2,500 Suppose B is also exposed to the risk of his motorbike being stolen and has the same loss distribution as A. Assume that the losses of A and B are uncorrelated. Two of them agree to a risk pooling arrangement and they will share losses equally. Based on the above, compute the following: Q01 Expected loss (A) = RM Q02 Variance (A) = RM Q03 Standard deviation (A) = RM Q04 Expected loss (B) = RM Q05 Variance (B) = RM Q06 Standard deviation (B) = RM A is exposed to the risk of his motorbike being stolen. His loss distribution is as shown below: Loss Distribution A Possible Outcome RM Probability 0.8 0.2 2,500 Suppose B is also exposed to the risk of his motorbike being stolen and has the same loss distribution as A. Assume that the losses of A and B are uncorrelated. Two of them agree to a risk pooling arrangement and they will share losses equally. Based on the above, compute the following: Q01 Expected loss (A) = RM Q02 Variance (A) = RM Q03 Standard deviation (A) = RM Q04 Expected loss (B) = RM Q05 Variance (B) = RM Q06 Standard deviation (B) = RM