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We assume two people having same distribution. For these people, we assume also that losses are uncorrelated Outcome Probability Loss 10,000 dollars 0.05 0 0.95
We assume two people having same distribution. For these people, we assume also that losses are uncorrelated Outcome Probability Loss 10,000 dollars 0.05 0 0.95 1. Explain risk pooling and give its main purpose 2. Calculate the expected value 3. Calculate the variance and Standard deviation
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