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1.Losses are Pareto with alfa = 2, theta = 1000. A policy has a disappearing deductible in which 120% of losses in excess of 500

1.Losses are Pareto with alfa = 2, theta = 1000. A policy has a disappearing deductible in which 120% of losses in excess of 500 will be paid until the insured is fully indemnified after which 100% of the excess loss will be paid.Calculate the expected amount paid per loss.

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