Actuarial Notes

SOA Exam P Sample Question 567

Study guide: Exam P-1

A company tests five batteries. Each battery has a probability p of being defective, where p is a constant. The events of different batteries being defective are mutually independent.

The number of defective batteries out of the five batteries is a random variable, N, where E(N^2) = 1.80.

Calculate \text{Var}(N).

  • A) 0.80
  • B) 0.98
  • C) 1.15
  • D) 1.67
  • E) 1.80

Answer this question and see the worked solution

Concepts tested

More questions from this set