Question: We assume two people having same distribution. For these people, we assume also that losses are uncorrelated Outcome - Probability Loss 10,000 dollars - 0.05

We assume two people having same distribution. For these people, we assume also that losses are uncorrelated

Outcome - Probability

Loss 10,000 dollars - 0.05

0. - 0.95

1. Explain risk pooling and give its main purpose .............................................................................................................................. .............................................................................................................................. .............................................................................................................................. ..............................................................................................................................

2. Calculate the expected value .............................................................................................................................. .............................................................................................................................. ..............................................................................................................................

3. Calculate the variance and Standard deviation .............................................................................................................................. .............................................................................................................................. ............................................................

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