Actuarial Notes

CAS Exam MAS-I Spring 2018, Question 6

Study guide: Exam MAS-I

You are given the following information about a system of only two components:

  • A and B are two independent components in a parallel system.
  • T_A and T_B are the time-to-failure random variables of A and B, respectively.
  • T_A has the same distribution as the first waiting time of a Poisson process with rate \lambda = 1.
  • T_B has a constant hazard rate \lambda_B = 2.
  • A and B start operation at the same time.

Calculate the expected time until the system fails.

  • A) Less than 1.00
  • B) At least 1.00, but less than 1.25
  • C) At least 1.25, but less than 1.50
  • D) At least 1.50, but less than 1.75
  • E) At least 1.75

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