exercise:2d78502172

Let [math]N[/math] denote the number of accidents occurring during one month on the northbound side of a highway and let [math]S[/math] denote the number occurring on the southbound side. Suppose that [math]N[/math] and [math]S[/math] are jointly distributed as indicated in the table.

N\S	0	1	2	3 or more
0	0.04	0.06	0.10	0.04
1	0.10	0.18	0.08	0.03
2	0.12	0.06	0.05	0.02
3 or more	0.05	0.04	0.02	0.01

Calculate [math]\operatorname{Var}(N | N + S = 2) [/math].

• 0.48
• 0.55
• 0.67
• 0.91
• 1.25

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