Banner Ad 1

Collapse

Announcement

Collapse
No announcement yet.

#20 May 2003 Exam p from soa

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #20 May 2003 Exam p from soa

    #20.A family buys two policies from the same insurance company. Losses under the two policies are independent and have continuous uniform distributions on the interval from 0 to 10. One policy has a deductible of 1 and the other has a deductible of 2. The family experiences exactly one loss under each policy. Calculate the probability that the total benefit paid to the family does not exceed 5.

    From the solution, the area of the probability for the "total benefit paid" would cover (0<x<6, 0<Y<2), (0<x<1,2<Y<7),and (1<x<6,2<Y<8-x). But I thought the area should not cover (0<x<1, 0<Y<2) since the deductible for x is 1 and the deductible for y is 2. Whatever the losses in the area of 0<x<1 and 0<y<2 are, there is no benefit paid to the family, right???

  • #2
    .

    no benefit paid means the payment = 0 ?

    Comment


    • #3
      Originally posted by sunfpk View Post
      no benefit paid means the payment = 0 ?
      Thanks. I think I know now.

      Comment

      Working...
      X