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Math 419 – Spring 2016 Transformations and Limits Problem Set 11 Problems 1. Losses for an insurance company follow a continuous distribution with probability density function f(x) = 375 / (x + 5)4 , for x > 0. What is the probability density function of Y = 1.3X + 0.4? 2. The accumulated value of an investment of 10,000 is modeled as a random variable Y = 10000e2X , where X is a continuous random variable with probability density function fX(x) = Ce– x, for 0 < x < 1, and zero otherwise, and where C is a positive constant. Find fY(y), the pdf of Y, and the region where it is positive. 3. The time T that a manufacturing system is out of operation has a cumulative distribution function F(t) = 1 – (2/t)2 , for t > 2 , and zero otherwise. The resulting cost to the company Y = T2. Determine the density function of Y, for y > 4. 4. Define the cumulative distribution function of X as follows: F(x) = 0, if x < 0.5 x2, if 0.5 £ x < 1 1, if x ³ 1 Let Y = 1/ (3X). Find E(Y). 1