SOA Exam P Sample Question 245
Study guide: Exam P-1
On Main Street, a driver’s speed just before an accident is uniformly distributed on [5, 20]. Given the speed, the resulting loss from the accident is exponentially distributed with mean equal to three times the speed.
Calculate the variance of a loss due to an accident on Main Street.
- A) 525
- B) 1463
- C) 1575
- D) 1632
- E) 1744
Answer this question and see the worked solution