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Unformatted text preview: Each claim during 2007 distributed exponentially with a mean of 5000. Claims in 2008 are subject to uniform inflation of 10%. Assume that the number of claims and the amount of the loss are independent and identically distributed. Using the normal distribution as an approximating distribution of aggregate losses, calculate the probability that losses will exceed 3 million....
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- Fall '11
- Normal Distribution, Probability theory, 10%, 120%, stop loss, Hospital Indemnity Policy