Question
The loss amount X for an insurance policy has the following probability density function: f(x) = 0, x < 0 1 1 2 x 2
The loss amount X for an insurance policy has the following probability density function:
f(x) = 0, x < 0 1 1 2 x 2 , 0 x 1 1 6 e 1x , x > 1 .
(a) (6 marks) Find the cumulative distribution function F(x) for X.
(b) (3 marks) Calculate the probability that the loss is greater than 2, given that it is greater than 0.5.
(c) (4 marks) Calculate the expected loss amount.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Numerical Analysis
Authors: Richard L Burden, J Douglas Faires, Annette M Burden
10th Edition
1305465350, 9781305465350
