SOA Exam FAM Sample Question 51
Study guide: Exam FAM
For an insurance:
(i) The number of losses per year has a Poisson distribution with \lambda = 10.
(ii) Loss amounts are uniformly distributed on (0, 10).
(iii) Loss amounts and the number of losses are mutually independent.
(iv) There is an ordinary deductible of 4 per loss.
Calculate the variance of aggregate payments in a year.
- A) 36
- B) 48
- C) 72
- D) 96
- E) 120
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