SOA Exam FAM Sample Question 43
Study guide: Exam FAM
A discrete probability distribution has the following properties:
(i) p_k = c\left(1 + \dfrac{1}{k}\right)p_{k-1} for k = 1, 2, \ldots
(ii) p_0 = 0.5
Calculate c.
- A) 0.06
- B) 0.13
- C) 0.29
- D) 0.35
- E) 0.40
Answer this question and see the worked solution