An insurance policy pays for a random loss X subject to a deductible of C, where 0

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An insurance policy pays for a random loss X subject to a deductible of C, where 0 < C < 1. The loss amount is modeled as a continuous random variable with density function

Given a random loss X, the probability that the insurance payment is less than 0.5 is equal to 0.64. Calculate C. Choose one of the following.

(a) 0.1

(b) 0.3

(d) 0.6

(e) 0.8

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Calculus With Applications

ISBN: 9780135871348

12th Edition

Authors: Margaret L. Lial

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Question Posted: Jan 23, 2023 03:40 AM

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An insurance policy pays for a random loss X subject to a deductible of C, where 0

Question:

f(x) = 2x for 0 < x < 1 lo otherwise.

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We are told that the payment is the loss minus the ded...View the full answer

Calculus With Applications

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