Pareto Type I Distribution - Worked Example with R ( Insurance Policies)

RWorkshop.github.io - Probability Distributions - Pareto Type I
The claim severity for an auto liability insurance coverage is modeled by a Pareto Type I distribution with shape parameter "alpha"=2.5 and scale parameter "theta" =1000. The insurance coverage pays up to a limit of 1200 per claim. Using a seed of 1234, simulate the nominal value of 50,000 such insurance claims. Estimate the expected insurance payment under this coverage for one claim.