SOA Exam P Sample Question 315
Study guide: Exam P-1
The random variable Y_1 = e^{X_1} characterizes an insurer's annual property losses, where X_1 is normally distributed with mean 16 and standard deviation 1.50. Similarly, the random variable Y_2 = e^{X_2} characterizes the insurer's annual liability losses, where X_2 is normally distributed with mean 15 and standard deviation 2.
The insurer's annual property losses are independent of its annual liability losses.
Calculate the probability that, in a given year, the minimum of the insurer's property losses and liability losses exceeds e^{16}.
- A) 0.126
- B) 0.154
- C) 0.250
- D) 0.309
- E) 0.346
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