Actuarial Exam P: Probability Basics

How many questions are on Exam P?

• 30
• 50
• 40
• 25

How long is the Exam P test?

• Four hours
• One hour
• Three hours
• Two hours

A ____ random variable can take only countable values.

• continuous
• discrete
• normal
• uniform

Which function describes probabilities for discrete variables?

• cdf
• pmf
• pdf
• mgf

For continuous variables, area under the pdf curve gives probability.

• True
• False

The ____ gives P(X ≤ x) and applies to both types.

• pmf
• mean
• cdf
• pdf

Which distribution models successes in fixed independent trials?

• Normal
• Poisson
• Geometric
• Binomial

The ____ distribution often models insurance claim counts.

• Poisson
• binomial
• uniform
• exponential

Which models trials needed for the first success?

• Binomial
• Geometric
• Poisson
• Normal

The exponential distribution has the memoryless property.

• True
• False

The ____ distribution has a familiar bell-shaped curve.

• normal
• geometric
• uniform
• Poisson

The normal distribution is defined by mean and what?

• Standard deviation
• Range
• Median
• Mode

The Central Limit Theorem says sums tend toward a uniform distribution.

• True
• False

Expected value E(X) is the long-run ____ outcome.

• average
• minimum
• median
• maximum

Variance equals E(X²) minus what?

• E(X)
• E(X²)
• Square of E(X)
• Standard deviation