A/S/M page 195 Question 16.6

This is a real shot in the dark but if anyone has this manual I’d greatly appreciate an explanation of how the pareto distribution is being evaluated. I’d also like to know what E[X V x] (but with the V upside down) means.

Don’t have the manual, but it sounds like you mean the limited expected value E[X^x]. Expected value of smaller of the random number X and the constant x. E.g., if X is uniform on [0,2], E[X^1]=.75 because for the values of X > 1, you use 1. This comes up a lot in problems with deductibles.

That helps quite a lot. Now I know what to google.

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