An insurer.s annual weather-related loss, X, is a random variable with density function
1. f(x) ={2.5(200)^2:5/x^3.5 for x > 200
0 otherwise
Calculate the difference between the 25th and 75th percentiles of X.
Last edited by mr fantastic; October 20th 2009 at 02:46 PM.
Reason: Moved from original thread and re-titled
An insurer.s annual weather-related loss, X, is a random variable with density function
1. f(x) ={2.5(200)^2:5/x^3.5 for x > 200 Mr F say: This function requires clarification. What does the full colon : mean. Do you mean 2.5(200)^(2.5/x^3.5)?
0 otherwise
Calculate the difference between the 25th and 75th percentiles of X.
Let the 25th percentile be and the 75th percentile be . Calculate where
and
(it's assumed that you know how to calculate probabilities using a pdf).
If you need more help, please show all you've done and state where you get stuck.