SOA Exam P Sample Question 409
Study guide: Exam P-1
The amount of a loss under a fire insurance policy is continuous and has cumulative distribution function
F(x) = \begin{cases}
0, & \text{for } x < 0 \\
c\left(\dfrac{x}{15}\right)^{4/3}, & \text{for } 0 \leq x \leq 10 \\
1, & \text{for } x > 10,
\end{cases}where c is a positive constant.
The insurer reimburses each loss up to a maximum amount m. The probability that a given loss is partially reimbursed is 0.56.
Calculate m.
- A)
5.40 - B)
6.47 - C)
7.03 - D)
7.80 - E)
8.10
Answer this question and see the worked solution