SOA Exam P Sample Question 216
Study guide: Exam P-1
A company has purchased a policy that will compensate for the loss of revenue due to severe weather events. The policy pays 1000 for each severe weather event in a year after the first two such events in that year. The number of severe weather events per year has a Poisson distribution with mean 1.
Calculate the expected amount paid to this company in one year.
- A) 80
- B) 104
- C) 368
- D) 512
- E) 632
Answer this question and see the worked solution