Stochastic Comparisons and Optimal Allocation for Policy Limits and Deductibles.

In this article, we discuss about the stochastic comparisons and optimal allocation for policy limits and deductibles. We order the total retained losses of a policyholder in the usual stochastic order under more general conditions ofXi(i = 1,…,n), based on which the optimal allocation of policy limits and deductibles are achieved in some special cases. Several results in Cheung (2007) and Lu and Meng (2011) are generalized here. [ABSTRACT FROM AUTHOR]