SOA Exam FAM Sample Question 46
Study guide: Exam FAM
The distribution of a loss, X, is a two-point mixture:
(i) With probability 0.8, X has a Pareto distribution with \alpha = 2 and \theta = 100.
(ii) With probability 0.2, X has a Pareto distribution with with (as printed) \alpha = 4 and \theta = 3000.
Calculate P(X \le 200).
- A) 0.76
- B) 0.79
- C) 0.82
- D) 0.85
- E) 0.88
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