SOA Exam P Sample Question 174
Study guide: Exam P-1
An insurance company has an equal number of claims in each of three territories. In each territory, only three claim amounts are possible: 100, 500, and 1000. Based on the company's data, the probabilities of each claim amount are:
| Claim Amount | 100 | 500 | 1000 |
|---|---|---|---|
| Territory 1 | 0.90 | 0.08 | 0.02 |
| Territory 2 | 0.80 | 0.11 | 0.09 |
| Territory 3 | 0.70 | 0.20 | 0.10 |
Calculate the standard deviation of a randomly selected claim amount.
- A) 254
- B) 291
- C) 332
- D) 368
- E) 396
Answer this question and see the worked solution