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Two business owners own identical buildings valued at $ 1 0 millions There is a 5 % chance each building will be destroyed by a
Two business owners own identical buildings valued at $ millions There is a chance each building will be destroyed by a peril in any year Loss to either building is an independent event
Calculate expected value and standard deviation of the loss for each owner if
a The owners are independent.
b The owners pool their loss exposures, and each agrees to pay an equal share of any loss that
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