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 0.95 1.

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 0.95 1. Explain risk pooling and give its main purpose 2. Calculate the expected value 3. Calculate the variance and Standard deviation Probability 4. We assume a new distribution of costs (Pooling with 2 people) Loss to Outcomes Neither 0 dollars Ann SODO Bob 5.000 Bach 10.000 Complete the table above b. Calculate the expected value c. Calculate Variance and Standard deviation d. Compare between results of question 3. Interpret

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