Actuarial Discussion Forum - Professional Discussions for Professional Actuaries

Actuarial Jobs from Actuary.com    Submit Your Actuarial Resume Anonymously
Other Insurance Jobs    Other Financial Jobs    Other Health Jobs    Other IT Jobs    Other Jobs, Careers and Employment    Actuarial News
Directory of Actuarial Exam Study Courses - Online    Directory of Actuarial Exam Study Materials    Directory of Actuarial Exam Study Seminars - Live
Directory of Actuarial Recruiters    Directory of Actuarial Schools    Actuarial Grads Network    Actuary.com 



D.W. Simpson & Co, Inc. - Worldwide Actuarial Jobs
Life Jobs 
Health Jobs Pension Jobs Casualty Jobs Salary Apply
Pauline Reimer, ASA, MAAA - Pryor Associates
Nat'l/Int'l Actuarial Openings: Life P&C Health Pensions Finance
ACTEX Publications and MadRiver Books
Serving students worldwide for over 40 years
Advertise Here - Reach Actuarial Professionals
Advertising Information
Actuarial Careers, Inc. - Actuarial Jobs Worldwide
Search positions by geographic region, specialization, or salary
Ezra Penland Actuarial Recruiters - Top Actuarial Jobs
Salary Surveys  Apply Online   Bios   Casualty   Health   Life   Pension

+ Reply to Thread
Results 1 to 2 of 2

Thread: Actex 2009 Edition Section 5 Example 5-14

  1. #1
    Actuary.com - Level I Poster
    Join Date
    Aug 2010
    Posts
    11

    Question regarding min/max and expected value

    "The continuous random variable X has pdf f(x) = 1 0<x<1. X1,X2,X3 are independent random variables all with the same distribution as X. Y = max{X1,X2,X3} and Z=min{X1,X2,X3}. Find E[Y-Z]."

    I have a quick question regarding how to solve for E[Y] and E[Z]...

    Solution was to solve the cdf in order to solve for E[Y] and use the survival function to solve for E[Z].

    Is this always the case when you are dealing with max and min with respect to random variables such as above?

    max -> use cdf
    min -> use survival?

    Best regards,
    j
    Last edited by MHailJ; May 6th 2012 at 05:16 PM.

  2. #2
    Actuary.com - Level I Poster
    Join Date
    Aug 2010
    Location
    Pennsylvania
    Posts
    21
    Yes. Try to picture it... If the maximum value of the 3 RV's is less than y, then all 3 RV's must be less than y, since the other values are less. The same works for the minimum value of the 3 RV's. If the minimum value of the 3 RV's is greater than y, then all 3 must be greater than y.

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

     

Similar Threads

  1. Actex Exam P (2009 Edition) for Sale
    By Hello Actuaria/ Stars in forum For P/1
    Replies: 1
    Last Post: April 29th 2011, 12:00 PM
  2. Replies: 0
    Last Post: March 14th 2011, 06:39 PM
  3. Replies: 0
    Last Post: January 24th 2011, 04:33 PM
  4. ASM 11th ed. AND Actex 2009 edition
    By ashack in forum For P/1
    Replies: 2
    Last Post: December 15th 2010, 10:10 AM
  5. Selling: ACTEX, 2009 edition.
    By calmathrules in forum For P/1
    Replies: 0
    Last Post: August 8th 2010, 05:12 PM

Bookmarks - Share

Bookmarks - Share

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts