SOA Exam P Sample Question 36
Study guide: Exam P-1
An insurance company insures a large number of homes. The insured value, X, of a randomly selected home is assumed to follow a distribution with density function
f(x) = \begin{cases} 3x^{-4}, & x > 1 \\ 0, & \text{otherwise.} \end{cases}
Given that a randomly selected home is insured for at least 1.5, calculate the probability that it is insured for less than 2.
- A) 0.578
- B) 0.684
- C) 0.704
- D) 0.829
- E) 0.875
Answer this question and see the worked solution