is the answer 100? or is this problem more complicated than that?

mardi 11 novembre 2014

Losses are exponentially distributed with mean 10. What is the variance of the amount paid per loss on a policy with a deductible of 10, including losses below the deductible?



For exponential, variance is mean squared, but does the deductible change the variance here? I know that the payment is zero when the loss is below 10. I know what f(x) is. If the answer is not 100 then I think I might need some help setting up how to solve this one.





is the answer 100? or is this problem more complicated than that?

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