SOA Exam P Sample Question 131
Study guide: Exam P-1
An insurer offers a travelers insurance policy. Losses under the policy are uniformly distributed on the interval [0, 5]. The insurer reimburses a policyholder for a loss up to a maximum of 4.
Determine the cumulative distribution function, F, of the benefit that the insurer pays a policyholder who experiences exactly one loss under the policy.
- A)
F(x) = \begin{cases} 0, & x < 0 \\ 0.20x, & 0 \le x < 4 \\ 1, & x \ge 4 \end{cases} - B)
F(x) = \begin{cases} 0, & x < 0 \\ 0.20x, & 0 \le x < 5 \\ 1, & x \ge 5 \end{cases} - C)
F(x) = \begin{cases} 0, & x < 0 \\ 0.25x, & 0 \le x < 4 \\ 1, & x \ge 4 \end{cases} - D)
F(x) = \begin{cases} 0, & x < 0 \\ 0.25x, & 0 \le x < 5 \\ 1, & x \ge 5 \end{cases} - E)
F(x) = \begin{cases} 0, & x < 1 \\ 0.25x, & 1 \le x < 5 \\ 1, & x \ge 5 \end{cases}
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