Question

A company is reviewing tornado damage claims under a farm insurance policy. Let X be the portion of a claim representing damage to the house and let Y be the portion of the same claim representing damage to the rest of the property. The joint density function of X and Y is Determine the probability that the portion of a claim representing damage to the house is less than 0.2.

Answer 1

Answer:

Please find the complete question in the attachment.

Step-by-step explanation:

The likelihood of the part of claims that is less than 0.05 for all the houses is calculated as:

$P(X < 0.05) = int^{0.05}_{0} int^{1-x}_{0} f(x,y) \ dy\ dx$

                    $= \int^{0.05}_{0} \int^{1-x}_{0} 6(1-x-y) \ dy\ dx\\\\= \int^{0.05}_{0} 6((1-x)-x(1-x)-\frac{(1-x)^2}{2}) \ dx\\\\ = \int^{0.05}_{0} 6(1-2x+x^2-0.5-0.5x^2+x) \ dx\\\\= \int^{0.05}_{0} 6(0.5x^2-x+0.5) \ dx\\\\= 6(0.5\times \frac{0.05^3}{3} -\frac{0.05^2}{2}+0.5 \times 0.05 )\\\\ =0.1426$