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You observe the following seven losses on a coverage with deductible 500 and maximum covered loss 10,000: 620 800 1250 1250 2000 2500 4000.

 

You observe the following seven losses on a coverage with deductible 500 and maximum covered loss 10,000: 620 800 1250 1250 2000 2500 4000. In addition, you observe two losses above 10,000, for which payments of 9,500 were made. You fit these losses to a two-parameter Pareto with = 1000, a = 1. Calculate the Kolmogorov-Smirnov statistic.

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