SOA Exam P Sample Question 328
Study guide: Exam P-1
The operating cost of a new claims system is modeled by a random variable X with variance 50. In its second year of use, inflation of 3% and an additional fixed maintenance cost of 2.5 increase the operating cost of the system.
Calculate the variance of the operating cost of the claims system in its second year of use.
- A) 52
- B) 53
- C) 54
- D) 56
- E) 59
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