SOA Exam P Sample Question 652
Study guide: Exam P-1
An insurance company offers basic and supplemental life coverages for small employee groups. For a group of size three, let X be the number who choose basic life and let Y be the number who choose supplemental life. The company models the probability distribution of X and Y using the joint probability function
p(x, y) = \begin{cases}
\dfrac{x + 2y}{40}, & x = 0, 1, 2, 3, \; y = 0, \ldots, x \\[6pt]
0, & \text{otherwise.}
\end{cases}Calculate the variance of X.
- A)
0.45 - B)
0.67 - C)
0.92 - D)
6.16 - E)
6.70
Answer this question and see the worked solution