SOA Exam P Sample Question 42
Study guide: Exam P-1
An insurance policy pays 100 per day for up to three days of hospitalization and 50 per day for each day of hospitalization thereafter.
The number of days of hospitalization, X, is a discrete random variable with probability function
P[X=k] = \begin{cases} \frac{6-k}{15}, & k=1,2,3,4,5 \\ 0, & \text{otherwise.} \end{cases}
Determine the expected payment for hospitalization under this policy.
- A) 123
- B) 210
- C) 220
- D) 270
- E) 367
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