CAS Exam MAS-I Fall 2018, Question 14
Study guide: Exam MAS-I
An actuary is using the inversion method to simulate a random number from a distribution with the following density function:
f(x) = 5x^4, \quad 0 < x < 1
A random draw of 0.6 was chosen from the uniform distribution (0, 1).
Calculate the simulated random number.
- A) Less than 0.2
- B) At least 0.2, but less than 0.4
- C) At least 0.4, but less than 0.6
- D) At least 0.6, but less than 0.8
- E) At least 0.8
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