Sponsored Ads
D.W. Simpson & Co, Inc.
Worldwide Actuarial Recruitment
Life   Health   Pension   Casualty   Salary   Apply
Pauline Reimer, ASA, MAAA
Pryor Associates
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: Geographic Region, Specialization or Salary
Ezra Penland Actuarial Recruiters
Top Actuarial Jobs
Salary Surveys   Apply Online   Bios   Casualty   Health   Life   Pension

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.

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
  •