Actuarial Notes

Exam P Practice Question 929

Study guide: Exam P-1

A random sample of size 3 is drawn without replacement from the integers \{1, 2, \ldots, n\}. The maximum value in the sample is denoted M.

The probability function of M is P[M=m] = \dfrac{3(m-1)(m-2)}{n(n-1)(n-2)} for m=3,\ldots,n.

Calculate \text{Var}(M).

  • A) \dfrac{3(n+1)(n-3)}{20}
  • B) \dfrac{3(n-1)(n-3)}{80}
  • C) \dfrac{3(n+1)(n-3)}{80}
  • D) \dfrac{(n+1)(n-1)}{20}
  • E) \dfrac{(n-1)(n-3)}{20}

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