SOA Exam P Sample Question 293
Study guide: Exam P-1
A company provides disability benefits to its employees. There are only two possible benefits: partial disability, costing the company 40, and total disability, costing the company 200. The company employs a number of married couples.
Let (X,Y) denote the company's disability costs for a randomly selected employed married couple. The joint probability function for (X,Y) is:
p(x,y) |
x=0 |
x=40 |
x=200 |
|---|---|---|---|
y=0 |
0.9729 | 0.0100 | 0.0020 |
y=40 |
0.0100 | 0.0020 | 0.0005 |
y=200 |
0.0020 | 0.0005 | 0.0001 |
Calculate the standard deviation of the total disability cost X + Y for the married couple.
- A) 12.3
- B) 13.8
- C) 15.7
- D) 16.6
- E) 19.8
Answer this question and see the worked solution