Actuarial Notes

Exam P Practice Question 5

Study guide: Exam P-1

The payment X, in thousands, that an insurer makes on a randomly selected claim has distribution function

F(x) = \begin{cases}
0, & x < 0 \\
0.2 + 0.1x, & 0 \le x < 2 \\
0.5 + 0.1x, & 2 \le x < 5 \\
1, & x \ge 5
\end{cases}

Calculate P(X \ge 1 \mid X \le 2). Give your answer as a decimal to two decimal places.

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