Actuarial Notes

SOA Exam P Sample Question 119

Study guide: Exam P-1

Damages to a car in a crash are modeled by a random variable with density function f(x) = \begin{cases} c(x^2 - 60x + 800), & 0 < x < 20 \\ 0, & \text{otherwise} \end{cases} where c is a constant.

A particular car is insured with a deductible of 2. This car was involved in a crash with resulting damages in excess of the deductible.

Calculate the probability that the damages exceeded 10.

  • A) 0.12
  • B) 0.16
  • C) 0.20
  • D) 0.26
  • E) 0.78

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