Actuarial Notes

SOA Exam P Sample Question 266

Study guide: Exam P-1

Claim amounts are independent random variables with probability density function

f(x) = \begin{cases} \dfrac{10}{x^2}, & \text{for } x > 10 \\ 0, & \text{otherwise.} \end{cases}

Calculate the probability that the largest of three randomly selected claims is less than 25.

  • A) 8/125
  • B) 12/125
  • C) 27/125
  • D) 2/5
  • E) 3/5

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