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(b) Let X be a loss random variable with density function exponential with 0 = 60. If X (b) Let X be a loss random

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(b) Let X be a loss random variable with density function exponential with 0 = 60. If X

(b) Let X be a loss random variable with density function exponential with = 60. If X < 50, a risk manager is paid a bonus equal to 65% of the difference between X and 50. Find variance ofthe bonus received by the risk manager. (6 marks)

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