SOA Exam P Sample Question 471
Study guide: Exam P-1
An insurance policy insures against two perils. Let X and Y be the number of monthly claims for each of these perils. The joint probability function of X and Y is given by
p(x,y) = \frac{2x + y + 1}{36}, \qquad \text{for } x = 0, 1, 2 \text{ and } y = 0, 1, 2.Calculate the variance of the marginal distribution of X.
- A)
0.56 - B)
0.64 - C)
0.75 - D)
0.80 - E)
0.89
Answer this question and see the worked solution
Concepts tested
- Conditional and Marginal Probability Functions
- Joint Probability Function
- Variance and Standard Deviation