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Same car insurance problem as above, but now you are willing to self-insure any losses up to $1000 (i.e., have a deductible of $1000). Your

image text in transcribed Same car insurance problem as above, but now you are willing to self-insure any losses up to $1000 (i.e., have a deductible of $1000). Your maximum coverage is 123 thousand USD, and the probability of losses over the year the following discrete distribution: 1K:10% 5K:2% 10K:1% 50K:0.5% 123K:0.1% The insurance company wants a 10% premium over expected loss. How much will you have to pay for the policy

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