SOA Exam P Sample Question 301
Study guide: Exam P-1
An insurance company sells a one-year insurance policy that covers fire and theft losses. The variance of the number of fire losses is 5, the variance of the number of theft losses is 8, and the covariance between the number of fire and theft losses is 3.
Calculate the variance of the total number of fire and theft losses covered by this policy.
- A) 7
- B) 10
- C) 13
- D) 16
- E) 19
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