Revision as of 17:47, 21 June 2025 by Admin
Jun 01'22

Exercise

Losses for year 1 equal

[[math]]\frac{1500(1-X^{1/3})}{1 + X^{1/3}}[[/math]]

with [math]X[/math] a non-negative random variable bounded by 1 with cumulative distribution function

[[math]] F(u) = u^2. [[/math]]

Determine the probability that losses exceed $1,500.

Jun 01'22

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