V
Viki2010
Member
The probability of a claim is q.
The sitribution function for the size of a claim is F(x).
The probability that the amount paid exceeds L, given that a claim occurs is:
1- F(x).
Why not (1-F(x)) / q?
This was a multiple choice question and my answer was (1-F(x)) / q
but the actual answer is 1-F(x).
The sitribution function for the size of a claim is F(x).
The probability that the amount paid exceeds L, given that a claim occurs is:
1- F(x).
Why not (1-F(x)) / q?
This was a multiple choice question and my answer was (1-F(x)) / q
but the actual answer is 1-F(x).