You are given the following:
i) Losses follow an exponential distribution with parameter $\theta = 20,000$.
ii) There is a deductible of 5,000 and no policy limit.
Determine the standard deviation of the insurer's cost corresponding to a single loss, including the possibility that the cost is zero.
Possible Answers
A 7,500
B 11,000
C 19,505
D 27,000
E 38,500