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Waiting Time
1) Let τ be a random variable which measures the time one has to wait for an event, such as default of a bond. As one can observe, the distribution of τ has the followingdensity function:
f(t) =
( λ > 0 is given )
a) Given any time t > 0, find the probability that one has to wait longer than t.
b) Find the cumulated density function Fτ for τ. ( Find the framework)
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