a,b, c. please

5. The underlying loss distribution for an individual health insurance claim amount, X, that occurs this year follows a Pareto distribution with a = 2.5 and 0 = 1000. The claim pays as follows: Claim amount Percent of paid claim by insurance company 0 5000 100% (company pays full cost of the claim) a. Determine the expected payment per loss for this policy. b. Suppose the company is considering lowering the percentage in the (500, 5000] layer to only covering 70% (i.e. increasing coinsurance to 30%). What is the expected payment per loss under this scenario? The table below may help. Claim amount Percent of paid claim by insurance company 0 5000 100% (company pays full cost of the claim) C. As a second alternative, the company is considering raising the deductible to $1000. What is the expected payment per loss under this alternative? The table below may help. Claim amount Percent of paid claim by insurance company OsX 5000 100% (company pays full cost of the claim) 5. The underlying loss distribution for an individual health insurance claim amount, X, that occurs this year follows a Pareto distribution with a = 2.5 and 0 = 1000. The claim pays as follows: Claim amount Percent of paid claim by insurance company 0 5000 100% (company pays full cost of the claim) a. Determine the expected payment per loss for this policy. b. Suppose the company is considering lowering the percentage in the (500, 5000] layer to only covering 70% (i.e. increasing coinsurance to 30%). What is the expected payment per loss under this scenario? The table below may help. Claim amount Percent of paid claim by insurance company 0 5000 100% (company pays full cost of the claim) C. As a second alternative, the company is considering raising the deductible to $1000. What is the expected payment per loss under this alternative? The table below may help. Claim amount Percent of paid claim by insurance company OsX 5000 100% (company pays full cost of the claim)