Actuarial Notes

CAS Exam MAS-I Fall 2018, Question 6

Study guide: Exam MAS-I

You are given:

  • A system has 9 independent components, i = 1, 2, 3, \ldots, 9
  • p_i = 0.75, is the probability that the i^{\text{th}} component is functioning
  • The system's structure is as pictured in the figure below:

  • A new component with probability of functioning = 0.95 is available to replace one of the current components.
  • The goal is to maximize the improvement of system's reliability.

Determine which one of the following components should be replaced to achieve the goal.

  • A) Component 1
  • B) Component 2
  • C) Component 5
  • D) Component 7
  • E) Component 8

Answer this question and see the worked solution

Concepts tested

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