SOA Exam FAM Sample Question 63
Study guide: Exam FAM
The random variable X represents the random loss, before any deductible is applied, covered by an insurance policy. The probability density function of X is
f(x) = 2x, \quad 0 < x < 1.
Payments are made subject to a deductible, d, where 0 < d < 1.
The probability that a claim payment is less than 0.5 is equal to 0.64.
Calculate the value of d.
- A) 0.1
- B) 0.2
- C) 0.3
- D) 0.4
- E) 0.5
Answer this question and see the worked solution