Question: Please show the step by step answer below, this is not assignment question.(Use Lognormal distribution) Example The claim size X against an insurance policy follows

Please show the step by step answer below, this is not assignment question.(Use Lognormal distribution)

Example The claim size X against an insurance policy follows x " Pareto(a = 100, y = 1.5). However, the payout Y of the policy is capped at M = 500. What is the average claim size E(X)? Derive the cdf of Y and compute the average payout E( Y). 309]

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