SOA Exam FAM Sample Question 83
Study guide: Exam FAM
The distribution of the number of claims, N, is a member of the (a, b, 0) class. You are given:
i) P(N = k) = p_k
ii) \dfrac{p_6}{p_4} = 0.5 and \dfrac{p_5}{p_4} = 0.8
A zero-modified distribution, N^M, associated with N has P(N^M = 0) = 0.1.
Calculate E(N^M).
- A) 3.64
- B) 3.73
- C) 3.85
- D) 4.00
- E) 4.05
Answer this question and see the worked solution