SOA Exam P Sample Question 229
Study guide: Exam P-1
A government employee’s yearly dental expense follows a uniform distribution on the interval from 200 to 1200. The government’s primary dental plan reimburses an employee for up to 400 of dental expense incurred in a year, while a supplemental plan pays up to 500 of any remaining dental expense.
Let Y represent the yearly benefit paid by the supplemental plan to a government employee.
Calculate \text{Var}(Y).
- A) 20,833
- B) 26,042
- C) 41,042
- D) 53,333
- E) 83,333
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