Actuarial Notes

SOA Exam P Sample Question 112

Study guide: Exam P-1

The figure below shows the cumulative distribution function of a random variable, X.

SOA's figure is a graph of F(x) against x; it is transcribed here as a table of the graph's pieces, left to right.

x F(x) on the graph
x < 0 0: horizontal, ending in an open circle at (0, 0)
0 \le x \le 2 0.5: horizontal, from a filled dot at (0, 0.5) to a filled dot at (2, 0.5)
2 \le x \le 3 a straight line from (2, 0.5) up to a filled dot at (3, 1.0)
x \ge 3 1.0: horizontal from (3, 1.0) onward

Calculate E(X).

  • A) 0.00
  • B) 0.50
  • C) 1.00
  • D) 1.25
  • E) 2.50

Answer this question and see the worked solution

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