Actuarial Notes

CAS Exam MAS-I Fall 2019, Question 6

Study guide: Exam MAS-I

You are given a system which consists of the following minimal cut sets:

\{1\}, \{2,3\}, \{4\}, \{5,6\}

The system is comprised of independent and identically distributed components, each with reliability 0.9.

Calculate the lower bound of the reliability of the system by using the first two inclusion-exclusion bounds from the method of inclusion and exclusion.

  • A) Less than 0.75
  • B) At least 0.75, but less than 0.77
  • C) At least 0.77, but less than 0.79
  • D) At least 0.79, but less than 0.81
  • E) At least 0.81

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