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with explanation Consider a collective risk model, where the claim count is distributed Poi(7) and the claim severity is distributed exponentially with mean equals to

with explanation Consider a collective risk model, where the claim count is distributed Poi(7) and the claim severity is distributed exponentially with mean equals to 1. Now, you are the junior analyst of the company and is assigned to provide a comparison between a proportional reinsurance of 50% and an excess of loss reinsurance with M =1/2. You should provide both the expectation and the variance of the pay-out

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