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Unformatted text preview: n balls have been dropped. Problem 4 The annual premium of a special kind of insurance starts at $1000 and is reduced by 15% after each year where no claim has been led. The probability that a claim is led in a given year is 0.1, independently of preceding years. What is the PMF of the total premium paid up to and including the year when the rst claim is led? Problem 5 Let X be a discrete random variable that is uniformly distributed over the set of integers in the range [ a,b ] , where a and b are integers with a < < b . Find the PMF of the random variables max { ,X } and min { ,X } . (Note that max { ,X } denotes a random variable that takes the value of X if this value is bigger than 0, and 0 otherwise. Similarly for min { ,X } .)...
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 Spring '07
 BARD

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