Suppose the loss amounts in year 2012 follow a lognormal distribution with parameters µ = 2 and o? 3. %3D Inflation increases the size of the previous year's loss amounts by 2% each year. Calculate the variance of loss amounts in year 2014. A Less than 22,000 At least 22,000 but less than 22,500 At least 22,500 but less than 23,000 At least 23,000 but less than 23,500 E At least 23,500

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Question 7
Suppose the loss amounts in year 2012 follow a lognormal distribution with parameters u = 2 and o²
= 3.
Inflation increases the size of the previous year's loss amounts by 2% each year.
Calculate the variance of loss amounts in year 2014.
A
Less than 22,000
В
At least 22,000 but less than 22,500
At least 22,500 but less than 23,000
At least 23,000 but less than 23,500
E
At least 23,500
Transcribed Image Text:Question 7 Suppose the loss amounts in year 2012 follow a lognormal distribution with parameters u = 2 and o² = 3. Inflation increases the size of the previous year's loss amounts by 2% each year. Calculate the variance of loss amounts in year 2014. A Less than 22,000 В At least 22,000 but less than 22,500 At least 22,500 but less than 23,000 At least 23,000 but less than 23,500 E At least 23,500
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