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For a particular v.a. of loss X, if a classic deductible of 1,000 is applied, the average excess loss is 3,500. But if those 1,000
For a particular v.a. of loss X, if a classic deductible of 1,000 is applied, the average excess loss is 3,500. But if those 1,000 are applied to X operating as a franchise, the average excess loss is 3,600. Calculate the expected cost per loss event if the 1,000 deductible is applied classically.
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