SOA Exam P Sample Question 350
Study guide: Exam P-1
A homeowner with theft insurance experiences exactly one theft this year. Loss due to theft is exponentially distributed with mean 2000. The insurer covers the loss due to theft up to a maximum of 3000.
Calculate the probability that the insurer will pay the homeowner exactly 3000 for the loss due to theft.
- A) 0.000
- B) 0.223
- C) 0.487
- D) 0.513
- E) 0.777
Answer this question and see the worked solution