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.
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.
Let the 25th percentile be $\displaystyle a$ and the 75th percentile be $\displaystyle b$. Calculate $\displaystyle b - a$ where
$\displaystyle \Pr(X < a) = 0.25$ and $\displaystyle \Pr(X < b) = 0.75$
(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.