excans:28b60c9cfe: Difference between revisions
From Stochiki
(Created page with "'''Solution: E''' Let X and Y denote the annual cost of maintaining and repairing a car before and after the 20% tax, respectively. Then Y = 1.2X and Var[Y] = Var[1.2X] = (1....") |
mNo edit summary |
||
| Line 3: | Line 3: | ||
Let X and Y denote the annual cost of maintaining and repairing a car before and after the 20% tax, respectively. Then Y = 1.2X and Var[Y] = Var[1.2X] = (1.2)2 Var[X] = | Let X and Y denote the annual cost of maintaining and repairing a car before and after the 20% tax, respectively. Then Y = 1.2X and Var[Y] = Var[1.2X] = (1.2)2 Var[X] = | ||
(1.2)2(260) = 374.4. | (1.2)2(260) = 374.4. | ||
{{soacopyright | 2023}} | {{soacopyright | 2023}} | ||
Revision as of 11:07, 7 May 2023
Solution: E
Let X and Y denote the annual cost of maintaining and repairing a car before and after the 20% tax, respectively. Then Y = 1.2X and Var[Y] = Var[1.2X] = (1.2)2 Var[X] = (1.2)2(260) = 374.4.
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.