SOA Exam P Sample Question 269
Study guide: Exam P-1
An insurance company has two divisions, auto and property. Total annual claims, X, in the auto division follow a normal distribution with mean 10 and standard deviation 3. Total annual claims, Y, in the property division follow a normal distribution with mean 12 and standard deviation 4.
Assume that X and Y are independent.
Calculate the probability that total overall claims, X + Y, will not exceed 29.
- A) 0.61
- B) 0.69
- C) 0.78
- D) 0.84
- E) 0.92
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