SOA Exam P Sample Question 539
Study guide: Exam P-1
The random variables X_1, X_2, X_3 represent the values of three independent investments. Each is normally distributed with E(X_i) = 100 and \text{Var}(X_i) = 27i/2, i = 1, 2, 3. Let \Phi(x) denote the cumulative distribution function of the standard normal variable.
Determine the probability that the average value of the three investments exceeds 106.
- A)
\Phi(2) - B)
\Phi(2/3) - C)
1 - \Phi(2/3) - D)
1 - \Phi(2) - E)
1 - \Phi\left(2/\sqrt{3}\right)
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