SOA Exam P Sample Question 340
Study guide: Exam P-1
An insurance company has a large number of claims pending. The amount, X, of an individual pending claim is assumed to follow a distribution with density function
f(x) = \begin{cases} \dfrac{2}{x^3}, & \text{for } x > 1 \\ 0, & \text{otherwise.} \end{cases}Calculate the probability that the amount of a randomly selected pending claim is less than 4, given that it is at least 3.
- A) 0.04
- B) 0.05
- C) 0.06
- D) 0.11
- E) 0.44
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