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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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