SOA Exam FAM Sample Question 25
Study guide: Exam FAM
For a certain company, losses follow a Poisson frequency distribution with mean 2 per year, and the amount of a loss is 1, 2, or 3, each with probability 1/3. Loss amounts are independent of the number of losses, and of each other.
An insurance policy covers all losses in a year, subject to an annual aggregate deductible of 2.
Calculate the expected claim payments for this insurance policy.
- A) 2.00
- B) 2.36
- C) 2.45
- D) 2.81
- E) 2.96
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