CAS Exam MAS-I Sample Question 1
Study guide: Exam MAS-I
An actuary is using the inversion method to simulate a gamma random variable with mean and variance both equal to 2. Two random draws from the uniform distribution (0,1) are independently made, and their values are 0.2 and 0.8.
Calculate the value of the simulated gamma random variable.
- A) Less than 0.5
- B) At least 0.5, but less than 1.0
- C) At least 1.0, but less than 1.5
- D) At least 1.5, but less than 2.0
- E) At least 2.0
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