The loss amount X in a loss event has Pareto distribution with a = 2 and 0 = 2000. An insurance covering this loss event has an ordinary deductible d and policy limit . You are given that The expected cost per loss for this insurance is 763.8889 and The expected cost per payment for this insurance is 1584. (a) Find and d. (Hint: What is the relation between E[Y4] and E[YP]?) (b) If there is 10% inflation in next year (i.e. all losses increase uniformly by 10%), calculate the expected cost per loss. The loss amount X in a loss event has Pareto distribution with a = 2 and 0 = 2000. An insurance covering this loss event has an ordinary deductible d and policy limit . You are given that The expected cost per loss for this insurance is 763.8889 and The expected cost per payment for this insurance is 1584. (a) Find and d. (Hint: What is the relation between E[Y4] and E[YP]?) (b) If there is 10% inflation in next year (i.e. all losses increase uniformly by 10%), calculate the expected cost per loss