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EXAM P QUESTIONS OF THE WEEK
S. Broverman, 2006
Week of February 13/06
A loss
is a random variable with the following density function:
\
.
0ÐBÑ œ Þ!!!" ß ! Ÿ B Ÿ "!ß !!!
An insurance policy will pay a part of the loss that occurs in the following way:
Loss Amount
Insurance Payment
B
B Ÿ "!!!
!
"!!! B Ÿ &!!!
B "!!!
B &!!!
%!!! Þ&ÐB &!!!Ñ
The coefficient of variation of a random variable
is defined to be
.
]
È
Z+<Ð]Ñ
IÐ] Ñ
Find the coefficient of variation of
if
is the amount of the insurance payment.
]]
The solution can be found below.
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This note was uploaded on 03/29/2010 for the course STATISTICS 50 taught by Professor Diaz during the Spring '10 term at California State University , Monterey Bay.
 Spring '10
 Diaz

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