Do The Math Q20

Do The Math Q20

An insurer’s annual weather-related loss, X, is a random variable with density function

Calculate the difference between the 30th and 70th percentiles of X.

  1. 35
  2. 93 Correct Answer
  3. 124
  4. 231
  5. 298

Solution: B

The distribution function of X is given by

Therefore, the pth percentile xp of  X is given by