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Question 1 (10 marks] Losses (prior to any deductibles being applied) have a distribution as reflected in the Table below. 10,000 15,000 22,500 32,500 00
Question 1 (10 marks] Losses (prior to any deductibles being applied) have a distribution as reflected in the Table below. 10,000 15,000 22,500 32,500 00 F(x) 0.6 0.7 0.8 0.9 1.0 ( x) 6000 7700 9500 11000 20000 + There is a per-loss ordinary deductible of 10,000. The deductible is then raised so that half the number of losses exceed the new deductible as exceeded the old deductible. Determine the percentage change in the expected claim per payment when the deductible is raised
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