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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:
- The sum of the ten losses equals 3679.
- Losses are modeled using an exponential distribution with maximum likelihood estimation.
- 5% inflation is expected in 2000 and 2001.
- 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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