Exam P Practice Problem 25 – Uniform Distribution

__________________________________________________________________
This post has no alternate problem. It has one problem with 3 parts.

Problem 25

A real estate property owner is at risk for losses due to two different perils affecting her property. There are no other potential losses in addition to these two different types of losses. Let X be the total amount of the losses in a year due to one peril and let Y be the total amount of the losses in a year due to the other peril. Suppose that X and Y are independent and are identically and uniformly distributed from 0 to 10.

In recent years, the owner finds that the total annual losses (due to both perils) always exceed 10.

  1. What is the probability that the loss X exceeds 5?
  2. What is the expected annual loss X?
  3. What is the variance of the annual loss X?

__________________________________________________________________

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

\text{ }

__________________________________________________________________

Answers

__________________________________________________________________

\copyright \ 2013

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: