Actuarial Notes

CAS Exam MAS-I Fall 2019, Question 4

Study guide: Exam MAS-I

A building is powered by three generators with independent lifetimes, each following an exponential distribution with mean of one year. All three generators are started at the same time.

Let T be the time in years between the first and last generator failure.

Calculate E[T].

  • A) Less than 0.8
  • B) At least 0.8, but less than 1.2
  • C) At least 1.2, but less than 1.6
  • D) At least 1.6, but less than 2.0
  • E) At least 2.0

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