SOA Exam P Sample Question 76
Study guide: Exam P-1
A car dealership sells 0, 1, or 2 luxury cars on any day. When selling a car, the dealer also tries to persuade the customer to buy an extended warranty for the car. Let X denote the number of luxury cars sold in a given day, and let Y denote the number of extended warranties sold.
P[X=0, Y=0] = 1/6
P[X=1, Y=0] = 1/12
P[X=1, Y=1] = 1/6
P[X=2, Y=0] = 1/12
P[X=2, Y=1] = 1/3
P[X=2, Y=2] = 1/6
Calculate the variance of X.
- A) 0.47
- B) 0.58
- C) 0.83
- D) 1.42
- E) 2.58
Answer this question and see the worked solution
Concepts tested
- Variance for Conditional and Marginal Distributions
- Marginal Probability Function
- Variance and Standard Deviation