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2. Auto liability losses for a group on insureds (Group R) follow a Pareto distribution with =2 and =2000. Loss for second group (Group S) follow a Pareto distribution with =2 and =3000. Group R has an ordinary deductible of 500 , while group S has a franchise deductible of 200 . (A) Calculate eR(d) for the group R. ( 2 marks) (B) Calculate es (d) for the group S. (2 marks) (C) Calculate the amount that the expected cost per payment for group S exceeds that for group R. ( 1 mark) lath 473 F2022 Assignment 2 (D) Now consider a Frechet distribution (refer to the Table in page 500 , new textbook), with parameter =2 and =2000. Find the expected cost per payment for the group R. Can you compare the Frechet model with the Pareto model in the context of this problem? ( 3 marks)