SOA Exam P Sample Question 388
Study guide: Exam P-1
Under an insurance policy, no benefit is paid on 75% of the claims filed. The benefits paid on the remaining claims are exponentially distributed with mean 8.
Calculate the variance of the benefit for a randomly selected claim under this policy.
- A)
2 - B)
14 - C)
16 - D)
28 - E)
32
Answer this question and see the worked solution
Concepts tested
- Variance for Conditional and Marginal Distributions
- Exponential Distribution
- Variance and Standard Deviation