Sum of Two Independent Identically Distributed Discrete RVs (Introduction to Discrete Convolution)

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SOA Sample Exam P Question 16: An insurance company determines that N, the number of claims received in a week, is a random variable with P[N = n] = 1/(2^(n+1)) where n ≥ 0. The company also determines that the number of claims received in a given week is independent of the number of claims received in any other week. Calculate the probability that exactly seven claims will be received during a given two week period.

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  1. Bill Kinney
  2. probability
  3. convolution
  4. discrete convolution
  5. sum of random variables
  6. discrete
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