SOA Exam P Sample Question 291

Study guide: Exam P-1

Let X and Y be discrete random variables with joint probability function

p(x,y) = \begin{cases}
0.250, & \text{for } x = 0,\ y = 0 \\
0.250, & \text{for } x = 1,\ y = 0 \\
0.125, & \text{for } x = 0,\ y = 1 \\
0.375, & \text{for } x = 1,\ y = 1.
\end{cases}

Calculate \text{Corr}(X, Y), the correlation coefficient of X and Y.

• A) 0.06
• B) 0.23
• C) 0.26
• D) 0.38
• E) 0.63

Answer this question and see the worked solution

Concepts tested

• Correlation Coefficient
• Covariance
• Joint Probability Function

More questions from this set

• SOA Exam P Sample Question 290
• SOA Exam P Sample Question 292