Exam P Practice Question 9
Study guide: Exam P-1
The size X, in thousands, of a randomly selected claim on a commercial property policy has density function
f(x) = \begin{cases}
\dfrac{5 - x}{8}, & 1 < x < 5 \\
0, & \text{otherwise.}
\end{cases}The insurer sends every claim larger than a threshold t for special review, and sets t so that 10% of claims are sent.
Calculate t.
- A) 1.21
- B) 1.74
- C) 3.74
- D) 4.20
- E) 4.60
Answer this question and see the worked solution
Concepts tested
- Continuous Random Variable
- Probability Density Function (PDF)
- Cumulative Distribution Function (CDF)
- Percentile