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(D) At least 0.6, but less than 0.7 (E) At least 0.7 You are given: (i) The prior distribution of the parameter O has probability density function: 7(0)= : 1 1<0<∞ (ii) Given O = 0, claim sizes follow a Pareto distribution with parameters a = 2 and 0. A claim of 3 is observed. Calculate the posterior probability that O exceeds 2. (A) 0.33 (B) 0.42 (C) 0.50 (D) 0.68

(D) At least 0.6, but less than 0.7 (E) At least 0.7 You are given: (i) The prior distribution of the parameter O has probability density function: 7(0)= : 1 1<0<∞ (ii) Given O = 0, claim sizes follow a Pareto distribution with parameters a = 2 and 0. A claim of 3 is observed. Calculate the posterior probability that O exceeds 2. (A) 0.33 (B) 0.42 (C) 0.50 (D) 0.68

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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(A) Less than 0.4 (B) At least 0.4, but less than 0.5 (C) At least 0.5, but less than 0.6 (D) At least 0.6, but less than 0.7 (E) At least 0.7 You are given: (i) The prior distribution of the parameter © has probability density function: #(0) = ! 1<0<∞ (ii) Given O = 0, claim sizes follow a Pareto distribution with parameters a = 2 and 0. A claim of 3 is observed. Calculate the posterior probability that O exceeds 2. (A) 0.33 (B) 0.42 (C) 0.50 (D) 0.58
Transcribed Image Text:(A) Less than 0.4 (B) At least 0.4, but less than 0.5 (C) At least 0.5, but less than 0.6 (D) At least 0.6, but less than 0.7 (E) At least 0.7 You are given: (i) The prior distribution of the parameter © has probability density function: #(0) = ! 1<0<∞ (ii) Given O = 0, claim sizes follow a Pareto distribution with parameters a = 2 and 0. A claim of 3 is observed. Calculate the posterior probability that O exceeds 2. (A) 0.33 (B) 0.42 (C) 0.50 (D) 0.58
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