SOA Exam P Sample Question 30
Study guide: Exam P-1
A company establishes a fund of 120 from which it wants to pay an amount, C, to any of its 20 employees who achieve a high performance level during the coming year. Each employee has a 2% chance of achieving a high performance level during the coming year. The events of different employees achieving a high performance level during the coming year are mutually independent.
Calculate the maximum value of C for which the probability is less than 1% that the fund will be inadequate to cover all payments for high performance.
- A) 24
- B) 30
- C) 40
- D) 60
- E) 120
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