Actuarial Notes

SOA Exam P Sample Question 426

Study guide: Exam P-1

The time, in years, until replacement for a new telephone pole has probability density function

f(t) = \begin{cases}
kt, & \text{for } 0 < t < 50 \\
0, & \text{otherwise,}
\end{cases}

where k is a constant.

Calculate the probability that a new telephone pole will be replaced within 25 years given that it is not replaced within 20 years.

  • A) 0.09
  • B) 0.11
  • C) 0.16
  • D) 0.17
  • E) 0.84

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