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THE PROFESSIONAL LIFE

Do the Math

An insurance policy pays for a random loss X subject to a deductible of C, where 0 < C < 1. The loss amount is modeled as a continuous random variable with density function

Given a random loss X, the probability that the insurance payment is less than 0.5 is equal to 0.64 .

Calculate C.

  1. 0.1
  2. 0.3
  3. 0.4
  4. 0.6
  5. 0.8
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