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# Losses this year have a distribution such that E(X ) = 32 and E(X ∧d )...

Losses this year have a distribution such that E(X ) = 32 and E(Xd ) = −3 + 1.1 d − 0.015 d 2, for d = 5, 6, 7, …, 36. Next year, losses will be uniformly higher by 10%. An insurance policy reimburses 100% of losses subject to a deductible of 11. Determine the ratio of next year's reimbursements to this year's reimbursements.

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