PRMIA Exam 8002 Topic 2 Question 87 Discussion

Actual exam question for PRMIA's 8002 exam

Question #: 87
Topic #: 2

Let N(.) denote the cumulative distribution function and suppose that X and Y are standard normally distributed and uncorrelated. Using the fact that N(1.96)=0.975, the probability that X 0 and Y 1.96 is approximately

A0.25%

B0.488%

C0.49%

D0.495%

Show Suggested Answer

Suggested Answer: B

by Oren at Aug 27, 2024, 02:06 PM

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Donte

3 months ago

Hey, at least we're not being asked to calculate the probability of a unicorn appearing. That would be truly impossible!

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Rhea

3 months ago

I bet the exam writer is having a good laugh at our expense right now. Probability problems can be such a headache!

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Malcolm

2 months ago

D) 0.495%

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Anastacia

2 months ago

C) 0.49%

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Lai

3 months ago

B) 0.488%

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Ariel

3 months ago

A) 0.25%

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Rima

3 months ago

Wait, isn't the answer supposed to be A) 0.25%? I'm a bit confused here, someone please enlighten me.

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Kayleigh

2 months ago

Yes, the probability that X > 0 and Y < 1.96 is approximately 0.488%

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Jules

3 months ago

Oh, I see now. Thanks for clarifying!

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Ruthann

3 months ago

No, the correct answer is actually B) 0.488%

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Annamae

3 months ago

This is a tricky one, but I'm pretty confident the answer is D) 0.495%. Gotta love those normal distribution probabilities!

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Carlton

2 months ago

I agree with you, it's D) 0.495%

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Farrah

2 months ago

I believe it's C) 0.49%

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Olga

3 months ago

I'm not sure, maybe it's A) 0.25%

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Vesta

3 months ago

I think the answer is D) 0.495%

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Dante

4 months ago

I believe the correct answer is D) 0.495%, as the probability should be closer to 0.5

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Celestina

4 months ago

Hmm, I'm not sure about this one. Maybe B) 0.488% is the right answer? I'll need to double-check the normal distribution tables.

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Cherry

3 months ago

Yes, that seems like the correct answer based on the given information.

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Bulah

3 months ago

I think you're on the right track with B) 0.488%

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Cyndy

4 months ago

I'm not sure, but I think the answer might be C) 0.49%

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Ria

4 months ago

I agree with Elza, because N(1.96)=0.975, so the probability should be close to 0.488%

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Elza

4 months ago

I think the answer is B) 0.488%

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Rashad

4 months ago

Okay, let's think this through step-by-step. X and Y are standard normal, so using the given fact, I think the answer should be C) 0.49%.

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Virgilio

4 months ago

Therefore, the answer should be C) 0.49%.

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Reiko

4 months ago

So, the probability that X > 0 and Y < 1.96 is 0.975 * 0.025 = 0.024375, which is closest to 0.49%.

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Doyle

4 months ago

I agree, since X and Y are uncorrelated, the probability is simply the product of their individual probabilities.

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