CAS Exam MAS-I Spring 2018, Question 1

Study guide: Exam MAS-I

You are given the following information:

• The amount of time one spends in an IRS office is exponentially distributed with a mean of 30 minutes.
• P_1 is the probability that John will spend more than an hour of total time in the IRS office, given that he has already been in the office for 20 minutes.
• P_2 is the probability that Lucy will spend more than an hour of total time in the IRS office, given that she has just arrived.

Calculate the difference (P_1 - P_2).

• A) Less than 0.00
• B) At least 0.00, but less than 0.05
• C) At least 0.05, but less than 0.10
• D) At least 0.10, but less than 0.15
• E) At least 0.15

Answer this question and see the worked solution

Concepts tested

• Exponential Distribution
• Conditional Probability

More questions from this set

• CAS Exam MAS-I Spring 2018, Question 2