Exam P Practice Problem 16 – Conditional Probability and Exponential Distribution

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Practice Problem 16A
Losses X and Y due to two different perils are independently and identically distributed according to the density function f(x)=0.25 \ e^{-0.25 \ x} where x>0. If the total loss for the two perils is greater than 2, what is the probability that X is greater than 1?

Practice Problem 16B
Losses X and Y due to two different perils are independently and identically distributed according to the density function f(x)=0.125 \ e^{-0.125 \ x} where x>0. If the total loss for the two perils is greater than 6, what is the probability that X is less than 4?

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Answers

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\copyright \ 2013

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One response

  1. Hi Dan, Did you explain similar problems in your website?
    I don’t have any clue to calculate the required conditional probability after finding the pdf of total loss.
    Any help is appreciated.

    Thank you.

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