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A prescription drug plan provides that the insured has the following annual payment re- sponsibilities: (i) All costs up to a deductible of 250. (ii)

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A prescription drug plan provides that the insured has the following annual payment re- sponsibilities: (i) All costs up to a deductible of 250. (ii) 25% of costs between 250 and 2250. (iii) All costs above 2250 until the total insured's payment reaches 3600. (iv) 5% of all remaining costs. The plan's costs are modeled by a Pareto distribution with a 2 and 0- 2000. Find the expected annual payment made by the plan

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