Actuarial Notes

CAS Exam MAS-I Fall 2019, Question 16

Study guide: Exam MAS-I

Suppose that X_1, \ldots, X_{10} is a random sample from a normal distribution with:

\sum_{i=1}^{10} X_i = 100 \quad \text{and} \quad \sum_{i=1}^{10} X_i^2 = 2000

The parameters of this distribution are estimated using the method of moments with raw moments only.

Calculate the estimated variance of this distribution.

  • A) Less than 120
  • B) At least 120, but less than 140
  • C) At least 140, but less than 160
  • D) At least 160, but less than 180
  • E) At least 180

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