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Licemer1 [7]
3 years ago
10

An insurance company sells automobile liability and collision insurance. Let X denote the percentage of liability policies that

will be renewed at the end of their terms and Y the percentage of collision policies that will be renewed at the end of their terms. X and Y have the joint cumulative distribution function F(x,y) = \dfrac{xy(x+y)}{2{,}000{,}000}, 0\le x\le 100, 0\le y \le 100. Calculate Var(X).
Mathematics
1 answer:
qaws [65]3 years ago
4 0

Answer:

-764.28

Step-by-step explanation:

Given the joint cumulative distribution of X and Y as

F(x,y) = \frac{xy(x+y)}{2000000}\ \ \ \, \ 0\leq x100, 0\leq y\leq 100

#First find F_x and probability distribution function ,f_x(x):

F_x(x)=F(x,100)\\\\\\=\frac{100x(x+100)}{2000000}\\\\\\\\=\frac{100x^2+10000x}{2000000}\\\\\\=>f_x(x)=\frac{x}{10000}+\frac{1}{200}

#Have determined the probability distribution unction ,f_x(x), we calculate the Expectation of the random variable X:

E(X)=\int\limits^{100}_0 \frac{x^2}{10000}+\frac{x}{200}  dx \\\\\\\\=|\frac{x^3}{30000}+\frac{x^2}{400}|\limits^{100}_0\\\\=58.33\\\\

#We then calculate E(X^2):

E(X^2)=\int\limits^{100}_0 \frac{x^3}{10000}+\frac{x^2}{200}\ dx\\\\=\frac{x^4}{40000}+\frac{x^3}{600}|\limits^{100}_0=4166.67\\\\Var(X)=E(X^2)-(E(X))^2=4166.67-58.33^2\\\\Var(X)=764.28

Hence, the Var(X) is 764.28  

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