Claims have a Pareto distribution with 𝛼= 2 and 𝜃 unknown. Claims the following year experience 6% uniform inflation. Let 𝑟 be the ratio of the proportion of claims that will exceed 𝑑 next year to the proportion of claims that exceed 𝑑 this year. Determine the
limit of 𝑟 as 𝑑 goes to infinity.
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