An insurance companys monthly claims are modeled by a continuous, positive random variable X, whose probability density
Question:
An insurance company’s monthly claims are modeled by a continuous, positive random variable X, whose probability density function is proportional to (1 + x)-4, where 0 < x < ∞. Determine the company’s expected monthly claims. Choose one of the following.
(a) 1/6
(b) 1/3
(c) 1/2
(d) 1
(e) 3
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Since the probability density function is proportional to 1 x 4 we have f...View the full answer
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