SOA Exam P Sample Question 207
Study guide: Exam P-1
Individuals purchase both collision and liability insurance on their automobiles. The value of the insured's automobile is V. Assume the loss L on an automobile claim is a random variable with cumulative distribution function
F(l)=\begin{cases}\frac{3}{4}\left(\frac{l}{V}\right)^3, & 0\leq l<V \\ 1-\frac{1}{10}e^{-\frac{l-V}{V}}, & V\leq l.\end{cases}Calculate the probability that the loss on a randomly selected claim is greater than the value of the automobile.
- A) 0.00
- B) 0.10
- C) 0.25
- D) 0.75
- E) 0.90
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