SOA Exam P Sample Question 465
Study guide: Exam P-1
Homeowner losses due to tornado damage are exponentially distributed with standard deviation \sigma. A homeowners policy covers tornado losses in full, subject to a deductible. The probability that a random loss exceeds the deductible by at least \sigma is 0.20.
Calculate the probability that a random loss exceeds the deductible by at least 0.5\sigma.
- A)
0.33 - B)
0.40 - C)
0.46 - D)
0.54 - E)
0.60
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