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Let X denote the proportion of employees at a large firm who will choose to be covered under the firm’s medical plan, and let Y denote the proportion who will choose to be covered under both the firm’s medical and dental plans.

Suppose that for 0 \leq y \leq x \leq 1, X and Y have the joint cumulative distribution function
F(x,y) = y(x2 + xy - y2)
Calculate the expected proportion of employees who will choose to be covered under both plans.

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Answer:

The expected proportion of employees who will choose to be covered under both plans is 0.714

Explanation:

Please see attachment

Let X denote the proportion of employees at a large firm who will choose to be covered-example-1
Let X denote the proportion of employees at a large firm who will choose to be covered-example-2
User Kornel Kisielewicz
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