SOA Exam P Sample Question 38
Study guide: Exam P-1
An insurance policy pays for a random loss X subject to a deductible of C, where 0 < C < 1. The loss amount is modeled as a continuous random variable with density function
f(x) = \begin{cases} 2x, & 0 < x < 1 \\ 0, & \text{otherwise.} \end{cases}
Given a random loss X, the probability that the insurance payment is less than 0.5 is equal to 0.64.
Calculate C.
- A) 0.1
- B) 0.3
- C) 0.4
- D) 0.6
- E) 0.8
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