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Problem 9. Let X denote the size of a loss for a risk. Assume: Before inflation, E[X A1] = 1000 - 1,000,000 for any l

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Problem 9. Let X denote the size of a loss for a risk. Assume: Before inflation, E[X A1] = 1000 - 1,000,000 for any l > 1000 Claims are subject to a policy limit of 20,000. Inflation of 25% uniformly affects all losses. What is the inflation rate for the expected payment on a claim made under the policy? Problem 9. Let X denote the size of a loss for a risk. Assume: Before inflation, E[X A1] = 1000 - 1,000,000 for any l > 1000 Claims are subject to a policy limit of 20,000. Inflation of 25% uniformly affects all losses. What is the inflation rate for the expected payment on a claim made under the policy

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