SOA Sample Questions, #58

[EaglesFan]

In the solution using the Bayes Method, when it says it is proportional to Lamda to the 335th power, why is it not to the 334th if there is a Lamda in the denominator? (Probably wouldn't make a difference in the answer choice, but I'm curious).

[campbell]

It is proportional to lambda to the 334th power... I think it's a typo, because they should have it look like: \alpha \frac{\lambda^{335} e^{-2000\lambda}}{\lambda} so it's more obviously a gamma distribution with parameters 335 and 1/2000. Remember the gamma distribution has an "extra" lambda in the denominator.

[EaglesFan]

Thanx.....Kind of surprising that in all this time SOA hasn't cleaned up the typo. It'd also be kind of cool if they invested an hour or two to give us some sample FE questions for Exam C (which I think they sort of promised or at least hinted were forthcoming at some point) but hey....C'est Lavie.