Actuarial Notes

CAS Exam MAS-I Spring 2018, Question 8

Study guide: Exam MAS-I

You are given a system of five independent components, with each component having reliability of 0.90. Three-out-of-five of the components are required to function for the system to function.

Calculate the reliability of this three-out-of-five system.

  • A) Less than 0.96
  • B) At least 0.96, but less than 0.97
  • C) At least 0.97, but less than 0.98
  • D) At least 0.98, but less than 0.99
  • E) At least 0.99

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