SOA Exam FAM Sample Question 42
Study guide: Exam FAM
For a collective risk model:
(i) The number of losses has a Poisson distribution with \lambda = 2.
(ii) The common distribution of the individual losses is:
x |
f_X(x) |
|---|---|
| 1 | 0.6 |
| 2 | 0.4 |
An insurance covers aggregate losses subject to a deductible of 3.
Calculate the expected aggregate payments of the insurance.
- A) 0.74
- B) 0.79
- C) 0.84
- D) 0.89
- E) 0.94
Answer this question and see the worked solution