Refer to Question 11. Assume that Al pools his losses with Eds store, which has an identical

Question:

Refer to Question 11. Assume that Al pools his losses with Ed’s store, which has an identical loss distribution. Ed’s losses are independent of Al’s. Al and Ed agree to split the total losses in the pool equally. Show the revised probability distribution for the mean loss from the pool.

In questions 11

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...