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Total claim counts generated from a portfolio of 1,000 policies follow a negative binomial distribution with parametersr = 5 r=5 and = 0.2 =0.2 .

Total claim counts generated from a portfolio of 1,000 policies follow a negative binomial distribution with parametersr

=

5

r=5

and

=

0.2

=0.2

.

Calculate the variance in total claim counts if the portfolio increases to 2,000 policies.

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