SOA Exam P Sample Question 86
Study guide: Exam P-1
The amounts of automobile losses reported to an insurance company are mutually independent, and each loss is uniformly distributed between 0 and 20,000. The company covers each such loss subject to a deductible of 5,000.
Calculate the probability that the total payout on 200 reported losses is between 1,000,000 and 1,200,000.
- A) 0.0803
- B) 0.1051
- C) 0.1799
- D) 0.8201
- E) 0.8575
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