The losses represented by X that follow a distribution with density function
f(x) = 0.008, 0 < x <= 75
= 0.016 & 75 < x < 100
The insurance coverage has a deductible of 40.
Find the following:
1. the mean E(X) and the variance Var(X) of random loss amount prior to the application of the deductible
2. the mean E(Y^L) and the variance Var(Y^L) of the insurance payment per loss
3. the mean E(Y^P) and the variance Var(Y^P) of the insurance payment per payment