Please anyone explain the qus. attached below. I didn't get (ii) part. How the individual claim size dist. of U is derived? I read in the chapter that F(x) is the weighted average of individual Fi(x) but didn't see it about pdf of individual claim size dist. May be its very basic. But I'm not getting the idea. They have taken for Z=1; X and Y both 1. For Z=2, X and Y both 2 and so on. Why? Please anyone help Thanks
Since the MGF of Z is 3/5 of X and 2/5 of Y, the PF of Z is 3/5 of X and 2/5 of Y. Hence the P(Z=1) is 3/5 of the P(X=1) and 2/5 of the P(Y=1), etc.
