Actuarial Notes

SOA Exam P Sample Question 83

Study guide: Exam P-1

An actuary determines that the annual number of tornadoes in counties P and Q are jointly distributed as follows:

Annual number of tornadoes in county P Annual number of tornadoes in county Q: 0 1 2 3
0 0.12 0.06 0.05 0.02
1 0.13 0.15 0.12 0.03
2 0.05 0.15 0.10 0.02

Calculate the conditional variance of the annual number of tornadoes in county Q, given that there are no tornadoes in county P.

  • A) 0.51
  • B) 0.84
  • C) 0.88
  • D) 0.99
  • E) 1.76

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