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O uestion i An insurance company issues policies covering damage to automobiles. The amount of damage is modeled by a uniform distribution on [0, b].
O uestion i An insurance company issues policies covering damage to automobiles. The amount of damage is modeled by a uniform distribution on [0, b]. The policy payout is subject to a deductible of b/ 10. A policyholder experiences automobile damage. Calculate the ratio of the standard deviation of the policy payout to the standard deviation of the amount of the damage. Possible Answers
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