Actuarial Notes

CAS Exam MAS-I Fall 2018, Question 5

Study guide: Exam MAS-I

You are given the following survival function for LED light bulbs in years:

S(x) = \left(1 - \frac{x}{30}\right)^{1/2}, \quad \text{for } 0 \le x < 30

A homeowner replaced his kitchen light with an LED light bulb 24 months ago and it is still functioning today.

Calculate the probability that the LED light bulb will stop working between 24 months and 81 months from today.

  • A) Less than 0.09
  • B) At least 0.09, but less than 0.10
  • C) At least 0.10, but less than 0.11
  • D) At least 0.11, but less than 0.12
  • E) At least 0.12

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