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) Suppose that each participant in a pooling arrangement has potential losses ranging from $0 to $4,000 and that each participant's expected loss is $1,000.
) Suppose that each participant in a pooling arrangement has potential losses ranging from $0 to $4,000 and that each participant's expected loss is $1,000. Sketch the probability distribution of average losses if the losses across participants are independent and if: i.) There is one participant (i.e., no pooling) ii.) There are 100 participants iii.) There are 1,000 participants.
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