Actuarial Notes

SOA Exam P Sample Question 386

Study guide: Exam P-1

To discourage traffic violations, county C charges each driver a fine of 1 for the driver's first ticket of this year, 2 for the driver's second ticket of this year, and generally n for the driver's nth ticket of this year.

The number of traffic tickets a certain driver in county C receives this year is Poisson distributed with mean 4.

Calculate the expected value of the total fine this driver is charged for tickets this year.

  • A) 6
  • B) 8
  • C) 10
  • D) 12
  • E) 14

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