ABy Admin
Jun 01'22
Exercise
Losses have a uniform distribution on [0,b]. When a deductible equal to r*b is in effect, the payment variance is 0.75(1-r)2 times the payment variance without 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]