3.9 Functions of Two or More Random Variables 175 $100. After the first $100, the insurance company pays the rest of the claim up to a maximum payment of $5000. Any excess must be paid by the policy holder. Suppose that the dollar amount X of a claim has a continuous distribution with p.d.f. f(x) =1/(1+x)² for x > 0 and 0 otherwise. Let Y be the amount that the insurance company has to pay on the claim. a. Write Y as a function of X, i.e., Y =r(X). b. Find the c.d.f. of Y. c. Explain why Y has neither a continuous nor a dis- crete distribution.
3.9 Functions of Two or More Random Variables 175 $100. After the first $100, the insurance company pays the rest of the claim up to a maximum payment of $5000. Any excess must be paid by the policy holder. Suppose that the dollar amount X of a claim has a continuous distribution with p.d.f. f(x) =1/(1+x)² for x > 0 and 0 otherwise. Let Y be the amount that the insurance company has to pay on the claim. a. Write Y as a function of X, i.e., Y =r(X). b. Find the c.d.f. of Y. c. Explain why Y has neither a continuous nor a dis- crete distribution.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:3.9 Functions of Two or More Random Variables 175
$100. After the first $100, the insurance company pays the
rest of the clainm up to a maximum payment of $5000. Any
excess must be paid by the policy holder. Suppose that the
dollar amount X of a claim has a continuous distribution
with p.d.f. f (x) =1/(1+x)² for x > 0 and 0 otherwise. Let
Y be the amount that the insurance company has to pay
on the claim.
a. Write Y as a function of X, i.e., Y =r (X).
b. Find the c.d.f. of Y.
c. Explain why Y has neither a continuous nor a dis-
crete distribution.
%3D

Transcribed Image Text:17. An insurance agent sells a policy which has a $100 de-
ductible and a $5000 cap. This means that when the policy
holder files a claim, the policy holder must pay the first
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