Actuarial Notes

CAS Exam MAS-I Fall 2018, Question 8

Study guide: Exam MAS-I

You are given the following information about a parallel system with two components:

  • The first component has a lifetime that is uniform on (0, 1)
  • The second component has a lifetime that is exponential with mean of 2

Determine which of the following is an expression for the expected lifetime of the system.

  • A) \int_0^1 (1-t)\, dt + \int_0^1 t\, e^{-\frac{1}{2}t}\, dt + \int_1^\infty e^{-\frac{1}{2}t}\, dt
  • B) \int_0^\infty (1-t)\, e^{-\frac{1}{2}t}\, dt
  • C) \int_0^1 t\, dt + \int_0^1 (1-t)(1 - e^{-\frac{1}{2}t})\, dt + \int_1^\infty (1 - e^{-\frac{1}{2}t})\, dt
  • D) \int_0^\infty e^{-\frac{1}{2}t}\, dt + \int_0^1 (1-t)\, dt - \int_1^\infty (1-t)\, e^{-\frac{1}{2}t}\, dt
  • E) \int_0^1 (1-t)\, dt + \int_0^\infty e^{-\frac{1}{2}t}\, dt - \int_0^\infty (1-t)\, e^{-\frac{1}{2}t}\, dt

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