Suppose that Marsha enters into a pooling arrangement with

  1. Suppose that Marsha enters into a pooling arrangement with 1,000 people, all of whom have the same loss distributions as Marsha. Assume that the losses of the participants in the pooling arrangement are uncorrelated. 

  2. Draw a reasonable probability distribution for Marsha's payment in the pooling arrangement. Now assume that there are 10,000 people in the pooling arrangement, that all the people have the same loss distributions, and that losses are uncorrelated. On the same graph, draw a reasonable probability distribution for Nancy's payment in the pooling arrangement.