SOA Exam P Sample Question 384
Study guide: Exam P-1
A dental insurance company offers two plans. The company's actuary makes the following observations:
i) The size of a claim under the first plan ranges from 0 to 1 and has a distribution with a density function proportional to the square of the size of the claim.
ii) For any p with 0 \leq p \leq 1, the (100p) percentile of the sizes of claims under the first plan equals the (100p^2) percentile of the sizes of claims under the second plan.
Determine the density function for the size of a claim under the second plan, for 0 \leq x \leq 1.
- A)
\dfrac{2}{3}x^5 - B)
6x^5 - C)
5x^4 - D)
2x - E)
\dfrac{3}{2}x^{1/2}
Answer this question and see the worked solution