SOA Exam P Sample Question 452
Study guide: Exam P-1
An insurance company's medical claims for individual policyholders are normally distributed with a mean of 1000 and a standard deviation of 625.
The insurance company sells the medical insurance to a group of 25 individuals whose claims are mutually independent.
The insurance company will lose money if the total claims for the 25 individuals exceeds 27,500.
Calculate the probability that the insurance company will lose money.
- A)
0.07 - B)
0.10 - C)
0.14 - D)
0.21 - E)
0.44
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