Whay are the different forms of money

(5 points) You project that the number of catastrophe losses next year for your company will follow a distribution with mean 1, variance 2 and probability function p(n) = (0.5)"#, n = 0,1,2. ... . You also project that each loss size will have the following probability function: Loss Size Probability 1 billion 0.4 2 billion 0.3 3 billion 0.2 4 billion 0.1 Loss sizes are assumed to be independent of one another and independent of the number of losses. The aggregate distribution of catastrophe losses has the following probability function for aggregate losses below 10 billion: Aggregate Losses Probability D billion 0.5000 1 billion D.1000 2 billion 0.0950 3 billion 0.0840 4 billion 0.0661 5 billion D.0403 6 billion D.0311 7 billion 0.0231 8 billion 0.0166 9 billion 0.0119 (a) (3 points) Calculate the probability that aggregate catastrophe losses will be 10 billion. (b) (1.5 points) Calculate the mean and coefficient of variation of aggregate catastrophe losses. (c) (0.5 points) Identify one disadvantage of using the recursive formula to calculate aggregate distribution probabilities