SOA Exam FAM Sample Question 45
Study guide: Exam FAM
For an insurance policy:
(i) Losses can be 100, 200 or 300 with respective probabilities 0.2, 0.2, and 0.6.
(ii) The policy has an ordinary deductible of 150 per loss.
(iii) Y^P is the claim payment per payment random variable.
Calculate \mathrm{Var}(X^P) (as printed).
- A) 1500
- B) 1875
- C) 2250
- D) 2625
- E) 3000
Answer this question and see the worked solution