SOA Exam P Sample Question 115
Study guide: Exam P-1
An auto insurance policy has a deductible of 1 and a maximum claim payment of 5. Auto loss amounts follow an exponential distribution with mean 2.
Calculate the expected claim payment made for an auto loss.
- A)
0.5e^{-2} - 0.5e^{-12} - B)
2e^{-1/2} - 7e^{-3} - C)
2e^{-1/2} - 2e^{-3} - D)
2e^{-1/2} - E)
3e^{-1/2} - 2e^{-3}
Answer this question and see the worked solution