Independent solution

How to solve this Uniform Distribution question

Setup

Setup

Let X be the original loss and U the portion not reimbursed. The reimbursement removes 60%, leaving a positive linear transformation of X.

XUniform(2,10)X\sim\operatorname{Uniform}(2,10)
U=X0.60X=0.40XU=X-0.60X=0.40X

Model

Model

A positive scale factor preserves percentile ranks. First locate the requested quantile of X, then apply the scale factor.

QX(p)=2+p(102)Q_X(p)=2+p(10-2)
QU(p)=0.40QX(p)Q_U(p)=0.40Q_X(p)

Compute

Compute

Evaluate the 30th percentile before and after the transformation.

QX(0.30)=2+0.30(8)=4.40Q_X(0.30)=2+0.30(8)=4.40
QU(0.30)=0.40(4.40)=1.76Q_U(0.30)=0.40(4.40)=1.76

Answer

Answer

The 30th percentile of the unreimbursed amount is 1.76.

1.76(A)\boxed{1.76\quad\text{(A)}}