Memorization Question
On Step 1 in the case study and in some of the other readings, the formulas for E(X) and Var(X) are used (Case study is lognormal, I think I saw Pareto somewhere else). Should we be memorizing the distribution formulas like those or will we usually be given them? If we should memorize, which distributions do you think we should memorize E(X) and Var(X) for?
Thanks!
Comments
This is tough as the CAS hasn't offered any guidance on the topic. In our opinion you should memorize (or know how to derive) formulas for the uniform and exponential distributions. If you can also memorize the mean of a Pareto distribution that's going to help.
For more complicated formulas such as limited expected moments for a Pareto distribution, or formulas for the lognormal distribution it's a fairly safe bet the CAS will provide them if needed.
The past exams from 2017 onwards seem to be a good guide as to what the CAS might provide.
Thank you!!