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1. A distribution of a random loss X has density function fX(x)={(x+1)(x+2)Ce5x0ifx>0ifx0 for some
constant C. After two years, there has been 15% inflation, so the loss distribution is now the
distribution of 1.15X. What is the density function for this distribution?

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1 A distribution of a random loss X has density function fX.pdf

  • 1. 1. A distribution of a random loss X has density function fX(x)={(x+1)(x+2)Ce5x0ifx>0ifx0 for some constant C. After two years, there has been 15% inflation, so the loss distribution is now the distribution of 1.15X. What is the density function for this distribution?