3
votes
1answer
99 views

Text on Probability Theory applied to Actuarial Science

I am a senior undergraduate who has passed the first three actuarial exams on probability (P), financial mathematics (FM), and models for financial economics (MFE). I am working on passing the life ...
1
vote
2answers
163 views

Where is the logic with this trinomial probability?

I am studying for Exam P to take in a few hours so I'd appreciate very much if someone got to me befoe I left. The problem says that we have three categories of risk, high, medium and low risk. The ...
4
votes
1answer
89 views

Monthly rental fee to achieve given profit on average, given probabilities of numbers of rentals

I have this problem here and I'm very unsure of how to start this. I have an idea but I'm not sure where to go from a certain point. The problem says: A video rental store is analyzing a flat fee ...
1
vote
2answers
128 views

Are waiting times always going to be exponentially distributed?

I'm studying for CAS/SOA Exam P/1 and a question I have here is: We have a portfolio of $20$ insurance policies. The number of claims per policy in a $3$-month period has a Poisson distribution ...
1
vote
1answer
667 views

What does it mean that the probability density function is proportional to a function?

I'm studying for SOA/CAS Exam P and I have a problem that says that $X$ is a continuous and positive random variable whose probability density function is proportional to: $$\frac{1}{(1+x)^5}$$ Where ...
0
votes
0answers
57 views

Simple insurance firm model.

This question is a part of an larger question in actuarial mathematics. It is a model of an insurance firm with periodic stochastic outflows of $X_i$, an initial wealth of u and some income paid ...
0
votes
3answers
353 views

SOA/CAS Exam P Question (from previous exam (Nov. '09)): Finding percentiles

So this question comes from SOA/CAS Exam P of November 2009, I'm not sure why the solution is the way it is. The question says this: An insurance company sells an auto insurance policy that ...
2
votes
2answers
80 views

How would I determine whether these events are independent?

I'm studying for CAS/SOA Exam 1/P and I'm stumped on this question. It says: From the set of families with two children a family is selected at random. Let $X_1=1$ if the first child of the family ...
2
votes
1answer
80 views

How is this the right answer?

In a survey of customer satisfaction, participants are asked to give a score of 1,2,3 or 4 to each of the 6 questions. If participants are instructed not to give the same numerical score to more than ...