Exam P Practice Question 7

Study guide: Exam P-1

Determine which of the following statements are true.

• I. If N is the number of claims a policy produces in a year, then P(N \le 3) - P(N < 3) = P(N = 3).

• II. Because a density function gives probabilities, the density of a continuous claim-size random variable can never exceed 1.

• III. A random variable whose possible values fill an interval need not be a continuous random variable.

• A) I only

• B) I and II only

• C) I and III only

• D) II and III only

• E) The answer is not given by (A), (B), (C), or (D)

Answer this question and see the worked solution

Concepts tested

• Discrete Random Variable
• Continuous Random Variable
• Random Variable
• Probability Density Function (PDF)

More questions from this set

• Exam P Practice Question 6
• Exam P Practice Question 8