Actuarial Notes

SOA Exam P Sample Question 635

Study guide: Exam P-1

Let X, Y, and Z be mutually independent exponential random variables with means \alpha, \beta, and 4 respectively.

Assume the following:

i) U = X + Y + Z ii) V = X - Y iii) E(U) = \text{Var}(V) iv) E(U) - E(V) = \dfrac{\text{Var}(U) - \text{Var}(V)}{2}

Calculate \alpha.

  • A) 0.5
  • B) 1.0
  • C) 1.5
  • D) 2.0
  • E) 2.5

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