Question 3 (10 marks) Loss size for an insurance coverage follows a two parameter Pareto distribution with parameters a = 3 and 0. The 0 varies by insured according to an exponential distribution, An insured has 4 losses in the first year with average size 1000 and 8 losses in the second year with average size 1300. The resulting Buhlmann-Straub estimate of average loss size for this insured is 1100. Determine the mean of the exponential distribution