SOA Exam P Sample Question 114
Study guide: Exam P-1
An actuary analyzes a company's annual personal auto claims, M, and annual commercial auto claims, N. The analysis reveals that Var(M) = 1600, Var(N) = 900, and the correlation between M and N is 0.64.
Calculate Var(M+N).
- A) 768
- B) 2500
- C) 3268
- D) 4036
- E) 4420
Answer this question and see the worked solution