IFoA Exam IFoA_CAA_M0 Topic 10 Question 7 Discussion

Actual exam question for IFoA's IFoA_CAA_M0 exam

Question #: 7
Topic #: 10

X is a random variable with expected value E(X).

Identify which of the following isnot a valid method for calculating the variance of X.

AE[ X - E(X) ]2

BThe second moment of X minus the square of the first moment of X.

CE( X2) - [ E(X) ]2

DE( X2) - E(X)

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Suggested Answer: D

by Lucina at May 08, 2022, 01:14 AM

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