Revision as of 14:34, 2 May 2023 by Admin (Created page with "'''Solution: E''' Let <math>X </math> and <math>Y</math> denote the times that the generators can operate. Now the variance of an exponential random variable is the square of...")
Exercise
ABy Admin
May 02'23
Answer
Solution: E
Let [math]X [/math] and [math]Y[/math] denote the times that the generators can operate. Now the variance of an exponential random variable is the square of the mean, so each generator has a variance of 100. Because they are independent, the variance of the sum is 200.
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.