SOA Exam P Sample Question 55
Study guide: Exam P-1
A recent study indicates that the annual cost of maintaining and repairing a car in a town in Ontario averages 200 with a variance of 260.
A tax of 20% is introduced on all items associated with the maintenance and repair of cars (i.e., everything is made 20% more expensive).
Calculate the variance of the annual cost of maintaining and repairing a car after the tax is introduced.
- A) 208
- B) 260
- C) 270
- D) 312
- E) 374
Answer this question and see the worked solution