Topic : frequency distribution of S ( Chapter 7- Risk models 1) In the question 7.3, given on page number 13 of the material , I have the following doubts: 1. What is a blob of probability? 2. Under N=2, in the 4th and 5th steps, I didn't understand how to take the limits of the integral. 3. I didn't understand how can we draw the graph. Thank you!
1. S is part discrete and part continuous. The discrete part is the "blob" 2. It's just rearranging the inequality \(0\leq s-y \leq 10\) so \(y \leq s\) or \(s-10 \leq y\). And since y takes values from 0 to 10 that gives the other limit. 3. It's just plotting the PDF for S that you calculated for each of the parts.
