SOA Exam P Sample Question 226
Study guide: Exam P-1
Losses, X, under an insurance policy are exponentially distributed with mean 10. For each loss, the claim payment Y is equal to the maximum of X - d (d > 0) and 0.
Calculate \text{Var}(Y).
- A)
100-d - B)
(10-d)^2 - C)
100e^{-d/10} - D)
100\!\left(2e^{-d/10}-e^{-d/5}\right) - E)
(10-d)^2\!\left(2e^{-d/10}-e^{-d/5}\right)
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