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Losses without deductible (full coverage) has a uniform distribution on [0,b]. When a deductible equal to rb is in effect, the loss variance is 0.75(1-r)<sup>2</sup> times the loss variance when there is no deductible. Determine which interval contains the value of r. | |||
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Revision as of 20:40, 18 March 2024
Losses without deductible (full coverage) has a uniform distribution on [0,b]. When a deductible equal to rb is in effect, the loss variance is 0.75(1-r)2 times the loss variance when there is no deductible. Determine which interval contains the value of r.
- [0.55,0.6]
- [0.68,0.73]
- [0.75,0.79]
- [0.82,0.85]
- [0.9,0.95]