Problem 80A
An individual purchases an insurance policy to cover a random loss. If a random loss occurs during the year, the amount of loss is at least 1. Once a random loss occurs, the insurance payment to the insured is modeled by the random variable with the following density function
If there is a loss, there is only one loss in each year. In each year, the probability of a loss is 0.25. What is the probability that the annual amount paid to the policyholder under this policy is less than 2?
Problem 80B
An individual purchases an insurance policy to cover a random loss. If a random loss occurs during the year, the loss amount is at least 1. Once a loss occurs, the insurance payment to the insured is modeled by the random variable with the following density function
If there is a loss, there is only one loss in each year. In each year, the probability of a loss is 0.15. What is the probability that the annual amount paid to the policyholder under this policy is less than 2?
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