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Exercise


ABy Admin
May 03'23

Answer

Solution: A

The number of components that fail has a binomial(2, 0.05) distribution. Then,

[[math]] \operatorname{P}( N ≥ 2)= p(2) + p(3) = \binom{3}{2}(0.05)^2(0.95) + \binom{3}{3}(0.05)^3 = 0.00725. [[/math]]

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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