SOA Exam P Sample Question 168
Study guide: Exam P-1
Claim amounts at an insurance company are independent of one another. In year one, claim amounts are modeled by a normal random variable X with mean 100 and standard deviation 25. In year two, claim amounts are modeled by the random variable Y = 1.04X + 5.
Calculate the probability that a random sample of 25 claim amounts in year two average between 100 and 110.
- A) 0.48
- B) 0.53
- C) 0.54
- D) 0.67
- E) 0.68
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