SOA Exam P Question 232 | Variance using Marginal Distributions
*error at 0:51 the reason why you plug in the max is because of the definition of marginal cdf. You can view another example here:
• SOA Exam P Question 230 | Expected Value f...
An insurance company sells automobile liability and collision insurance. Let X denote
the percentage of liability policies that will be renewed at the end of their terms and Y the
percentage of collision policies that will be renewed at the end of their terms. X and Y
have the joint cumulative distribution function
F(x,y)=((xy)(x+y))/2000000
Calculate Var(X).
(A) 764
(B) 833
(C) 3402
(D) 4108
(E) 4167
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