SOA Exam FAM Sample Question 10
Study guide: Exam FAM
You are given:
| Number of Claims | Probability | Claim Size | Probability |
|---|---|---|---|
| 0 | 1/5 | ||
| 1 | 3/5 | 25 | 1/3 |
| 150 | 2/3 | ||
| 2 | 1/5 | 50 | 2/3 |
| 200 | 1/3 |
Claim sizes are independent.
Calculate the variance of the aggregate loss.
- A) 4,050
- B) 8,100
- C) 10,500
- D) 12,510
- E) 15,612
Answer this question and see the worked solution