Re: Spring 98 #9

Beth Sweeney ( (no email) )
Tue, 27 Oct 1998 12:09:41 -0600

Insurer's Payment
0 x<= 5000
x-5000 5000<=x<=25000
20000 x>=25000

Average non-zero payment equals:
[integral of (x-5000)f(x)dx (from 5000 to 25000)
+ 20000{1-F(25000)}]/(1-F(5000))

----------
> From: Elliot Joel Bernstein <elliot@westegg.com>
> To: studygroup4b@lists.casact.org
> Subject: Spring 98 #9
> Date: Tuesday, October 27, 1998 11:20 AM
>
> Could someone please explain how you set up the distribution of claims
for
> this problem?
>
> Thanks.
>
> - Elliot