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ABy Admin
Jun 02'22

Exercise

An insurance policy offers coverage for three years. You are given the following about the annual loss:

  • Annual losses are independent
  • The annual loss has an exponential distribution with mean 500

Determine the mode of the loss distribution for the three year coverage.

  • 500
  • 750
  • 1,000
  • 2,000
  • 2,500
ABy Admin
Jun 02'22

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