Losses have a lognormal distribution with = 10 and = 2. For losses below $20,000,

Losses have a lognormal distribution with μ = 10 and σ = 2. For losses below $20,000, no amount is paid. For losses between $20,000 and $60,000, the full amount is paid. For losses above $60,000, the amount of $60,000 is paid:

(a) Find the expected cost per loss.

(b) Find the variance of the cost per loss.