SOA Exam P Sample Question 152
Study guide: Exam P-1
An insurance company issues policies covering damage to automobiles. The amount of damage is modeled by a uniform distribution on [0, b].
The policy payout is subject to a deductible of b/10.
A policyholder experiences automobile damage.
Calculate the ratio of the standard deviation of the policy payout to the standard deviation of the amount of the damage.
- A) 0.8100
- B) 0.9000
- C) 0.9477
- D) 0.9487
- E) 0.9735
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