Independent solution

How to solve this Exponential Distribution question

Setup

Setup

The lifetime is exponential with mean 300, and the target is its conditional 95th percentile after survival beyond 100.

XExp(mean 300)X\sim\operatorname{Exp}(\text{mean }300)
P(XpX>100)=0.95P(X\le p\mid X>100)=0.95

Model

Model

By memorylessness, the excess beyond 100 is exponential with the same mean. A 95th conditional percentile leaves upper-tail probability 0.05.

P(X>pX>100)=e(p100)/300=0.05P(X>p\mid X>100)=e^{-(p-100)/300}=0.05

Compute

Compute

Inverting the 0.05 tail and restoring the elapsed 100 gives 998.719.

p=100300log(0.05)=998.719p=100-300\log(0.05)=998.719

Answer

Answer

The requested conditional percentile rounds to 1000, corresponding to choice E.

1000(E)\boxed{1000\quad\text{(E)}}