A manufacturers annual losses follow a distribution with density function To cover its losses, the manufacturer purchases
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A manufacturer’s annual losses follow a distribution with density function
To cover its losses, the manufacturer purchases an insurance policy with an annual deductible of 2. What is the mean of the manufacturer’s annual losses not paid by the insurance policy? Choose one of the following.
(a) 0.84
(b) 0.88
(c) 0.93
(d) 0.95
(e) 1.00
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