a. Determine the mean and variance of X

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
Problem 9PPS
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The distribution of X is a two point mixture.
With probability .8, X is a 2 parameter Pareto with a = 3, 0 = 100.
%3D
With probability .2, X has a 2 parameter Pareto with a = 6, 0 =
%3D
100.
a. Determine the mean and variance of X
b. Determine e(100), the mean excess loss at 100.
C. Determine 90% VaR.
Transcribed Image Text:The distribution of X is a two point mixture. With probability .8, X is a 2 parameter Pareto with a = 3, 0 = 100. %3D With probability .2, X has a 2 parameter Pareto with a = 6, 0 = %3D 100. a. Determine the mean and variance of X b. Determine e(100), the mean excess loss at 100. C. Determine 90% VaR.
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