correct answer

Question 6 (5 points) Companies A and B have been participating in a pooling arrangement for some time, but they are considering the possibility of adding more members to the pool. What would be the effect on the distribution of the average losses if more participants were added to the pool, assuming each has a loss distribution that is identical to, and independent from, the distributions for Companies A and B? (Check all that apply.) lower standard deviation of losses same standard deviation of losses same expected loss lower expected loss higher standard deviation of losses higher expected loss