Liability claim sizes follow a Pareto distribution with shape parameter α = 1.2 and scale parameter θ = 10, 000. Suppose that the insurance coverage pays claims subject to an ordinary deductible of...

Liability claim sizes follow a Pareto distribution with shape parameter α = 1.2 and scale parameter θ = 10, 000. Suppose that the insurance coverage pays claims subject to an ordinary deductible of 20,000 per loss. Given that a loss exceeds the deductible, determine the expected insurance payment.