SOA Exam P Sample Question 308
Study guide: Exam P-1
A life insurance policy pays 1000 upon the death of a policyholder provided that the policyholder survives at least one year but less than five years after purchasing the policy.
Let X denote the number of years that a policyholder survives after purchasing the policy with the following probabilities:
x |
P[X < x] |
|---|---|
| 1 | 0.05 |
| 2 | 0.12 |
| 3 | 0.21 |
| 4 | 0.33 |
| 5 | 0.48 |
Calculate the standard deviation of the payment made under this policy.
- A) 218
- B) 430
- C) 480
- D) 495
- E) 500
Answer this question and see the worked solution