SOA Exam P Sample Question 180
Study guide: Exam P-1
An insurance policy covers losses incurred by a policyholder, subject to a deductible of 10,000. Incurred losses follow a normal distribution with mean 12,000 and standard deviation c. The probability that a loss is less than k is 0.9582, where k is a constant. Given that the loss exceeds the deductible, there is a probability of 0.9500 that it is less than k.
Calculate c.
- A) 2045
- B) 2267
- C) 2393
- D) 2505
- E) 2840
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