15. An insurance policy reimburses the excess of a loss over 2. The policy- holder's loss, Y, follows a distribution with density function f (y) = 2/y3 if y > 1 and 0 otherwise. What is the expected value of the benefit paid under the insurance policy?

15. An insurance policy reimburses the excess of a loss over 2. The policy- holder's loss, Y, follows a distribution with density function f (y) = 2/y3 if y > 1 and 0 otherwise. What is the expected value of the benefit paid under the insurance policy?

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter13: Probability And Calculus

Section13.CR: Chapter 13 Review

Problem 29CR

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Question

15. An insurance policy reimburses the excess of a loss over 2. The policy-
holder's loss, Y, follows a distribution with density function f (y) = 2/y3
if y > 1 and 0 otherwise. What is the expected value of the benefit
paid under the insurance policy?

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