Actuarial Notes

SOA Exam P Sample Question 492

Study guide: Exam P-1

A machine's lifetime X, in years, is modeled by an exponential distribution. The probability that the machine still functions after one year is 0.80.

F is the cumulative distribution function for X.

Determine F(x) for x \geq 0.

  • A) F(x) = 0.8^x
  • B) F(x) = 0.8^x e^{-0.8x}
  • C) F(x) = 1 - 0.8^x
  • D) F(x) = 1 - e^{-0.8x}
  • E) F(x) = e^{-0.8x}

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