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The following are ten ground-up losses observed in 1999: 18 78 125 168 250 313 410 540 677 1100 You are given: The sum of

The following are ten ground-up losses observed in 1999:

18 78 125 168 250 313 410 540 677 1100

You are given:

  1. The sum of the ten losses equals 3679.
  2. Losses are modeled using an exponential distribution with maximum likelihood estimation.
  3. 5% inflation is expected in 2000 and 2001.
  4. All policies written in 2001 have an ordinary deductible of 100 and a policy limit of 900.

Determine the expected amount paid per loss in 2001.

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