Losses follow a lognormal distribution with = 5, = 1. Inflation is a uniform 5%

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Losses follow a lognormal distribution with µ = 5, σ = 1. Inflation is a uniform 5% per year. A coverage has a franchise deductible of 500.

Calculate the average payment per loss after 1 year?

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Statistics For Engineers And Scientists

ISBN: 9780073401331

4th Edition

Authors: William Navidi

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Posted Date: Mar 29, 2023 12:07 AM

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Losses follow a lognormal distribution with = 5, = 1. Inflation is a uniform 5%

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Finding the estimated value of the losses per claim is necessary before making adjustments for the f... View the full answer

Statistics For Engineers And Scientists

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