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How do you find the conditional pdf of a lifetime function?

+1 vote
asked Jun 22, 2017 in BUS 3018F - Models by mike_symmonds (280 points)

This question relates to the 2015 Test paper 1, Question 1. The question is as follows:image

The question involves finding the conditional pdf of (Tx|Tx ≤ n) (well at least i think) and then evaluating E(Tx|Tx≤ n). The answer is then that expectation plus x. My question is how would you go about finding the conditional pdf?

1 Answer

+2 votes
answered Jun 23, 2017 by asilmotala (2,610 points)
selected Jun 23, 2017 by Njabulo.Dube
Best answer

Hi Mike

So I was a bit lazy to type out the answer in the hotseat as I currently do not have my laptop. However please find attached my workings for your question. I hope this helps you, as well as shows you an alternative approach to this question.