Question: the loss l due to a boat accident is exponentially...
The loss L due to a boat accident is exponentially distributed. Boat insurance policy A covers up to 1 unit for each loss. Boat insurance policy B covers up to 2 units for each loss.
The probability that a loss is fully covered under policy B is 1.9 times the probability that it is fully covered under policy A.
Calculate the variance of L.
the answer is 90.7