SOA Exam P Sample Question 227
Study guide: Exam P-1
For a certain insurance company, 10% of its policies are Type A, 50% are Type B, and 40% are Type C.
The annual number of claims for an individual Type A, Type B, and Type C policy follow Poisson distributions with respective means 1, 2, and 10.
Let X represent the annual number of claims of a randomly selected policy.
Calculate the variance of X.
- A) 5.10
- B) 16.09
- C) 21.19
- D) 42.10
- E) 47.20
Answer this question and see the worked solution