SOA Exam P Sample Question 298
Study guide: Exam P-1
The claim, X, for a dental insurance policy is a random variable with the following probability function:
x |
P[X = x] |
|---|---|
| 0 | 0.5 |
| 1 | 0.2 |
| 2 | 0.3 |
The premium for the policy is equal to 125% of the expected claim amount.
Calculate the approximate probability that the total claims on 76 independent policies exceed the total premium collected.
- A) 0.02
- B) 0.07
- C) 0.17
- D) 0.25
- E) 0.40
Answer this question and see the worked solution