Dresden and Morgan both have the following loss distribution. Loss Possibility Loss Probability  $0 .90 $4,000 .10   If Dresden and Morgan form a pooling arrangement to share losses, what is the standard deviation of average losses for each of them after the pool is formed?   O a. $28   O b. $280   O c. $848   O d. $4000

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Dresden and Morgan both have the following loss distribution. Loss Possibility Loss Probability
 $0 .90
$4,000 .10
 
If Dresden and Morgan form a pooling arrangement to share losses, what is the standard deviation of average losses for each of them after the pool is formed?
 
O a. $28
 
O b. $280
 
O c. $848
 
O d. $4000
Dresden and Morgan both have the following loss distribution.
Loss Possibility Loss Probability
$0
90
$4,000
10
If Dresden and Morgan form a pooling arrangement to share losses, what is the standard deviation of average losses for each of them after the pool is
formed?
O a. $28
Ob. $280
Oc. $848
O d. $4000
Transcribed Image Text:Dresden and Morgan both have the following loss distribution. Loss Possibility Loss Probability $0 90 $4,000 10 If Dresden and Morgan form a pooling arrangement to share losses, what is the standard deviation of average losses for each of them after the pool is formed? O a. $28 Ob. $280 Oc. $848 O d. $4000
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