CAS Exam MAS-I Fall 2018, Question 18
Study guide: Exam MAS-I
An exponential distribution is fitted to the loss size data below using the method of moments.
| Interval | Number of Observations |
|---|---|
| (0, 100] | 5,000 |
| (100, 500] | 3,000 |
| (500, 1000] | 1,500 |
| (1000, 5000] | 500 |
Losses are assumed to follow a uniform distribution within each interval.
Calculate the fitted probability of a loss exceeding 500.
- A) Less than 0.15
- B) At least 0.15, but less than 0.25
- C) At least 0.25, but less than 0.35
- D) At least 0.35, but less than 0.45
- E) At least 0.45
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