Problem 3 The underlying distribution for 2011 losses is given by f(x) = -5 , x > 0 where losses are expressed in millions of euros. Inflation of 4% impacts all claims uniformly from 2011 to 2012. Under a basic limits policy, individual losses are capped at 2.0 million in each year. What is the inflation rate from 2011 to 2012 on the capped losses? Problem 3 The underlying distribution for 2011 losses is given by f(x) = -5 , x > 0 where losses are expressed in millions of euros. Inflation of 4% impacts all claims uniformly from 2011 to 2012. Under a basic limits policy, individual losses are capped at 2.0 million in each year. What is the inflation rate from 2011 to 2012 on the capped losses