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An insurance covers losses up to a maximum of 1000. Losses in 2009 follow an exponential distribution with parameter 0=300. The inflation rate is 15% per year. Determine the difference between the expected payment per loss of 2009 and 2010.

An insurance covers losses up to a maximum of 1000. Losses in 2009 follow an exponential distribution with parameter 0=300. The inflation rate is 15% per year. Determine the difference between the expected payment per loss of 2009 and 2010.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
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An insurance covers losses up to a maximum of 1000. Losses in 2009 follow an exponential distribution with parameter 0=300. The inflation rate is 15% per year. Determine the difference between the expected payment per loss of 2009 and 2010. U
Transcribed Image Text:An insurance covers losses up to a maximum of 1000. Losses in 2009 follow an exponential distribution with parameter 0=300. The inflation rate is 15% per year. Determine the difference between the expected payment per loss of 2009 and 2010. U
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