SOA Exam P Sample Question 221
Study guide: Exam P-1
An insurance policy will reimburse only one claim per year.
For a random policyholder, there is a 20% probability of no loss in the next year, in which case the claim amount is 0. If a loss occurs in the next year, the claim amount is normally distributed with mean 1000 and standard deviation 400.
Calculate the median claim amount in the next year for a random policyholder.
- A) 663
- B) 790
- C) 873
- D) 994
- E) 1000
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