Jun 02'22
Exercise
A loss variable [math]L[/math] has a density function that is proportional to
[[math]]
x^{\alpha -1}e^{-x/\theta}.
[[/math]]
The parameters [math]\theta [/math] and [math]\alpha [/math] are random with the following joint distribution
[math]\alpha = 1 [/math] | [math]\alpha = 2[/math] | |
[math]\theta = 500 [/math] | 0.25 | 0.35 |
[math]\theta = 1000 [/math] | 0.15 | 0.25 |
Determine the standard deviation of [math]L[/math] to the nearest integer.
- 298
- 1,088
- 1,220
- 1,279
- 1,565