Faculty of Actuaries Institute of Actuaries EXAMINATION April 2005 Subject CT3 Probability and Mathematical Statistics Core Technical EXAMINERS REPORT Introduction The attached subject report has been written by the Principal Examiner with the aim of helping candidates. The questions and comments are based around Core Reading as the interpretation of the syllabus to which the examiners are working. They have however given credit for any alternative approach or interpretation which they consider to be reasonable. M Flaherty Chairman of the Board of Examiners 15 June 2005 Faculty of Actuaries Institute of Actuaries Subject CT3 (Probability and Mathematical Statistics Core Technical) April 2005 Examiners Report 1 x = 6212 , x2 = 4186784 6212 x = £ 10 1 62122 s 4186784 = £ 9 10 9 1 1 3 1 2 (a) P(A B) P(A) P(B) P(A B) 2 2 4 4 1 1 1 P(A)P(B) ( 2)( 2) 4 so the events A and B are independent as P(A B) P(A)P(B). (b) P(A B C) P(A) P(B) P(C) P(A B) P(A C) P(B C) P(A B C) 1 1 1 1 1 1 1 5 2 2 3 4 6 6 12 6 [OR P(A B C) P(A B) P(C) P(A C) P(B C) P(A B C) 3 1 1 1 1 5 4 3 6 6 12 6 .]