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Revision as of 08:35, 21 March 2026
An actuary determines that the annual number of tornadoes in counties P and Q are jointly distributed as follows:
| Q= 0 | Q=1 | Q=2 | Q=3 | |
|---|---|---|---|---|
| P=0 | 0.12 | 0.06 | 0.05 | 0.02 |
| P=1 | 0.13 | 0.15 | 0.12 | 0.03 |
| P=2 | 0.05 | 0.15 | 0.10 | 0.02 |
Calculate the conditional variance of the annual number of tornadoes in county Q, given that there are no tornadoes in county P.
- 0.51
- 0.84
- 0.88
- 0.99
- 1.76
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.