Do The Math Q20

An insurer’s annual weather-related loss, X, is a random variable with density function

Calculate the difference between the 30^th and 70^th percentiles of X.

1. 35
2. 93 Correct Answer
3. 124
4. 231
5. 298

Solution: B

The distribution function of X is given by

Therefore, the p^th percentile x_p of  X is given by