SOA Exam P Sample Question 50
Study guide: Exam P-1
An insurance policy reimburses a loss up to a benefit limit of 10. The policyholder's loss, Y, follows a distribution with density function:
f(y) = \begin{cases} \frac{2}{y^3}, & y > 1 \\ 0, & \text{otherwise.} \end{cases}
Calculate the expected value of the benefit paid under the insurance policy.
- A) 1.0
- B) 1.3
- C) 1.8
- D) 1.9
- E) 2.0
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