SOA Exam P Sample Question 411

Study guide: Exam P-1

An automobile insurance company specializes in insuring high-risk drivers.

The number of accidents for a randomly selected high-risk driver in year 1 is modeled by a random variable X. The number of accidents for the same driver in year 2 is modeled by a random variable Y.

The probability mass function of X and Y is

p(x,y) = \begin{cases}
\dfrac{(4-x)(3-y)}{60}, & \text{for } x = 0,1,2,3 \text{ and } y = 0,1,2 \\
0, & \text{otherwise.}
\end{cases}

Calculate \text{Var}(Y).

• A) 0.56
• B) 0.67
• C) 0.75
• D) 1.00
• E) 1.44

Answer this question and see the worked solution

Concepts tested

• Conditional and Marginal Probability Functions
• Joint Probability Function
• Variance and Standard Deviation

More questions from this set

• SOA Exam P Sample Question 410
• SOA Exam P Sample Question 412