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Suppose that an insurance company pays out claims according to a Pois- son process with a rate of twelve claims per week. Suppose furthermore that

Suppose that an insurance company pays out claims according to a Pois- son process with a rate of twelve claims per week. Suppose furthermore that the claim amounts are independent and exponentially distributed random variables with mean $3,000, and that the claim amounts are independent of the Poisson process. Determine the mean and variance of the total claim disbursements by the insurance company per quarter (13 weeks). Explain.

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