SOA Exam FAM Sample Question 20
Study guide: Exam FAM
Prescription drug losses, S, are modeled assuming the number of claims has a geometric distribution with mean 4, and the amount of each prescription is 40.
Calculate E[(S - 100)_+].
- A) 60
- B) 82
- C) 92
- D) 114
- E) 146
Answer this question and see the worked solution