SOA Exam FAM Sample Question 19
Study guide: Exam FAM
You are given:
(i) Losses follow an exponential distribution with the same mean in all years.
(ii) The loss elimination ratio this year is 70%.
(iii) The ordinary deductible for the coming year is 4/3 of the current deductible.
Calculate the loss elimination ratio for the coming year.
- A) 70%
- B) 75%
- C) 80%
- D) 85%
- E) 90%
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