SOA Exam P Sample Question 339
Study guide: Exam P-1
Let N denote the number of items returned out of the next 500 items sold at a department store. For each item sold, the probability that the item is returned is 0.12. Returns are mutually independent.
Calculate the standard deviation of N.
- A) 7.27
- B) 7.75
- C) 12.75
- D) 20.98
- E) 52.80
Answer this question and see the worked solution