IFoA April 2011 Q10 (ii)

Discussion in 'CT6' started by Chandrima, Jul 13, 2017.

  1. Chandrima

    Chandrima Member

    Posting the question and solution of IFoA April 2011 Q10's part (ii). How is Var(Y) = 200*Var(X) + 200*E(X)2 coming? Can anybody please explain?? Do they mean E(x)^2 at the end of the expression? Even if they mean that how is it coming?? Please help.
     

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    Chandrima, Jul 13, 2017
    #1
  2. Varsha Agarwal

    Varsha Agarwal Member

    V(S)=E(N)*V(X)+V(N)*E^2(X).
    Square is written wrongly
    Also in following steps it's 40^2 and 800^2.
     
    Varsha Agarwal, Jul 13, 2017
    #2
    John Lee and Chandrima like this.
  3. Chandrima

    Chandrima Member

    Thanks a lot. Yes it was for compound distribution.
     
    Chandrima, Jul 14, 2017
    #3
  4. Sam88

    Sam88 Member

    How did they get Pr(Z<2000)=Pr(Y>9200)?
     
    Sam88, Apr 16, 2018
    #4

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