Written homework problem 19
Assigned 11/19 and due 12/1
Suppose that you are an auto insurer. On average each of your customers will have a car
accident once every 5 years. What are the chances that one particular customer will be accident
free for the next five years, but have an accident between years five and ten? [ Let X be the
random variable equal to how long it will be before their next accident. This variable has an
exponential distribution with parameter λ = 1/5, that is, f (x) = 15 e−x/5 . ]
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