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Alderan Toy Store faces the following probability distribution of fire losses in its store over the next year: Probability Loss 0.83 $0 0.15 $10,000 0.02
Alderan Toy Store faces the following probability distribution of fire losses in its store over the next year: Probability Loss 0.83 $0 0.15 $10,000 0.02 $25,000 H) Calculate the expected value and standard deviation of Alderan's losses for the year. (9 Points) 1) Assume that Alderan pools his losses with Dagobahs store, which has an identical loss distribution. Dagobah's losses are independent of Alderan's. Alderan and Dagobah agree to split the total losses in the pool equally. Show the revised probability distribution for the mean loss from the pool. (9 Points) J) Calculate the expected value and standard deviation of the pooled mean losses. (9 Points) H) Probability Loss Expected Value of Loss Column 1 Loss outcomes Column 2 Probabilities Column 3 Loss Outcome - Expected Loss Column 4 Squared Difference Column 5 Squared Difference x Probability Sum Variance Standard Deviation D) Alderan's Loss Dagobah's Loss Total Loss Mean Loss Probability 1) Expected Value of Loss Column 1 Column 2 Column 3 Loss Outcome - Expected Loss Column 4 Squared Difference Column 5 Squared Difference x Probability Loss outcomes Probabilities Sum Variance Standard Deviation
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