SOA Exam FAM Sample Question 58
Study guide: Exam FAM
Aggregate losses are modeled as follows:
(i) The number of losses has a Poisson distribution with \lambda = 3.
(ii) The amount of each loss has a Burr distribution with \alpha = 3, \theta = 2, \gamma = 1.
(iii) The number of losses and the amounts of the losses are mutually independent.
Calculate the variance of aggregate losses.
- A) 12
- B) 14
- C) 16
- D) 18
- E) 20
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