CT3 IFoA April 2012 Q10(ii)(a)

Discussion in 'CT3' started by Chandrima, Apr 17, 2017.

  1. Chandrima

    Chandrima Member

    How are they calculating E(S|N=n) ? Someone please help. I have exam on 21st. Please see screenshot of question and answer as attached. I am not understanding the underlined parts. How is it E(X) and 2*E(X)?
     

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    Chandrima, Apr 17, 2017
    #1
  2. John Lee

    John Lee ActEd Tutor Staff Member

    So \(E(S|N=1) = E(X_1) = E(X)\) and \(E(S|N=2) = E(X_1 + X_2) = E(X_1) + E(X_2) = 2E(X)\)
     
    John Lee, Apr 18, 2017
    #2
    Chandrima likes this.
  3. Chandrima

    Chandrima Member

    Yup Sir, I got it later. Thanks so much.
     
    Chandrima, Apr 24, 2017
    #3

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