SOA Exam P Sample Question 580
Study guide: Exam P-1
Let X_1, X_2, X_3, X_4 be independent observations of a random variable with mean 10 and standard deviation 3.
Calculate the variance of 3X_1 - X_2 - X_3 - X_4.
- A)
27 - B)
36 - C)
54 - D)
81 - E)
108
Answer this question and see the worked solution
Concepts tested
- Linear Combinations of Random Variables
- Variance and Standard Deviation
- Independent Random Variables