SOA Exam P Sample Question 214
Study guide: Exam P-1
A certain town experiences an average of 5 tornadoes in any four year period. The number of years from now until the town experiences its next tornado as well as the number of years between tornados have identical exponential distributions and all such times are mutually independent.
Calculate the median number of years from now until the town experiences its next tornado.
- A) 0.55
- B) 0.73
- C) 0.80
- D) 0.87
- E) 1.25
Answer this question and see the worked solution