Actuarial Notes

SOA Exam P Sample Question 248

Study guide: Exam P-1

Let $X$ be a random variable that takes on the values $-1$ , $0$ , and $1$ with equal probabilities.

Let $Y=X^2$ .

Which of the following is true?

A) $\text{Cov}(X,Y)>0$ ; the random variables $X$ and $Y$ are dependent.
B) $\text{Cov}(X,Y)>0$ ; the random variables $X$ and $Y$ are independent.
C) $\text{Cov}(X,Y)=0$ ; the random variables $X$ and $Y$ are dependent.
D) $\text{Cov}(X,Y)=0$ ; the random variables $X$ and $Y$ are independent.
E) $\text{Cov}(X,Y)<0$ ; the random variables $X$ and $Y$ are dependent.

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