SOA Exam P Sample Question 59
Study guide: Exam P-1
The owner of an automobile insures it against damage by purchasing an insurance policy with a deductible of 250. In the event that the automobile is damaged, repair costs can be modeled by a uniform random variable on the interval (0, 1500).
Calculate the standard deviation of the insurance payment in the event that the automobile is damaged.
- A) 361
- B) 403
- C) 433
- D) 464
- E) 521
Answer this question and see the worked solution