Actuarial Notes

SOA Exam P Sample Question 32

Study guide: Exam P-1

The loss due to a fire in a commercial building is modeled by a random variable X with density function f(x) = \begin{cases} 0.005(20-x), & 0 < x < 20 \\ 0, & \text{otherwise.} \end{cases}

Given that a fire loss exceeds 8, calculate the probability that it exceeds 16.

  • A) 1/25
  • B) 1/9
  • C) 1/8
  • D) 1/3
  • E) 3/7

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