SOA Exam P Question 51 | Expected Value With Deductible

Описание к видео SOA Exam P Question 51 | Expected Value With Deductible

A manufacturer’s annual losses follow a distribution with density function

f(x)=2.5(.6)^2.5/x^3.5 x greater than .6

To cover its losses, the manufacturer purchases an insurance policy with an annual
deductible of 2.
Calculate the mean of the manufacturer’s annual losses not paid by the insurance policy.
(A) 0.84
(B) 0.88
(C) 0.93
(D) 0.95
(E) 1.00

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