Final answer:
The statement is not correct. The deductible is $150 and the losses incurred by policyholders are said to follow an exponential distribution.
Step-by-step explanation:
The statement is not correct.
A deductible is the amount of money that an insurance policyholder needs to pay out of pocket before their insurance coverage kicks in to pay for a claim. In this case, the deductible is $150. The losses incurred by policyholders follow an exponential distribution. An exponential distribution is a probability distribution that models the time between events in a Poisson process. In insurance, it is often used to model the time between claims. The statement does not provide enough information to determine if an exponential distribution accurately represents the losses incurred.