CAS Exam MAS-I Spring 2019, Question 5

Study guide: Exam MAS-I

You are given the following information about random variable X:

• The hazard rate function is:

r(x) = \begin{cases}
\dfrac{k^2}{3x}, & \text{for } x \geq 2 \\
0, & \text{otherwise}
\end{cases}

• The value of the cumulative distribution function at x = 5 is:

F(5) = 0.936.

Calculate the absolute value of k.

• A) Less than 1.5
• B) At least 1.5, but less than 2.5
• C) At least 2.5, but less than 3.5
• D) At least 3.5, but less than 4.5
• E) At least 4.5

Answer this question and see the worked solution

Concepts tested

• Hazard Rate
• Survival Model
• Cumulative Distribution Function (CDF)

More questions from this set

• CAS Exam MAS-I Spring 2019, Question 4
• CAS Exam MAS-I Spring 2019, Question 6