CAA Probability & Statistics

Question 1

What is the probability of rolling a sum of 7 with two six-sided dice?

Accepted Answer

1/6

Answer

There are six possible outcomes that result in a sum of 7 out of 36 total outcomes, giving a probability of 6/36 = 1/6.

Question 2

What does the expected value of a probability distribution represent?

Accepted Answer

The long-term average outcome

Answer

The expected value represents the long-term average outcome of a random variable if the experiment is repeated many times.

Question 3

If a fair coin is flipped twice, what is the probability of getting two heads?

Accepted Answer

1/4

Answer

Each flip has a probability of 1/2 for heads. The probability of two heads is (1/2) × (1/2) = 1/4.

Question 4

Which measure of central tendency is most affected by extreme values?

Accepted Answer

Mean

Answer

The mean is most affected by extreme values because it considers all values in a dataset, including outliers.

Question 5

What does a standard deviation measure in a dataset?

Accepted Answer

The spread of values around the mean

Answer

The standard deviation measures the spread of data values from the mean, indicating variability within the dataset.

(CAA) Certified Actuarial Analyst Practice Test