Diketahui	Sebuah kerugian berdistribusi Pareto dengan parameter \(\alpha \) dan \(\theta = 1.000\). The Loss Elimination Ratio (LER) pada 600 adalah 0,4.
Rumus yang digunakan	\(LER = \frac{{E\left( {X \wedge d} \right)}}{{E\left( X \right)}}\) Pareto: \(E\left[ X \right] = \frac{\theta }{{\alpha – 1}}\) dan \(\begin{array}{*{20}{c}} {E\left[ {X \wedge u} \right] = \frac{\theta }{{\alpha – 1}}\left[ {1 – {{\left( {\frac{\theta }{{u + \theta }}} \right)}^{\alpha – 1}}} \right],}&{\alpha \ne 1} \end{array}\)
Proses pengerjaan	\(LER = \frac{{E\left( {X \wedge d} \right)}}{{E\left( X \right)}} = \frac{{\frac{\theta }{{\alpha – 1}}\left[ {1 – {{\left( {\frac{\theta }{{d + \theta }}} \right)}^{\alpha – 1}}} \right]}}{{\frac{\theta }{{\alpha – 1}}}}\) \(LER = 1 – {\left( {\frac{\theta }{{d + \theta }}} \right)^{\alpha – 1}}\) \(0.4 = 1 – {\left( {\frac{{1000}}{{600 + 1000}}} \right)^{\alpha – 1}}\) \({\left( {0.625} \right)^{\alpha – 1}} = 0.6\) \(\alpha = \frac{{\ln \left( {0.6} \right)}}{{\ln \left( {0.625} \right)}} + 1\) \(\alpha = 2.086855\)
Jawaban	c. paling sedikit 2,0 akan tetapi kurang dari 2,1