Actuarial Notes

SOA Exam P Sample Question 479

Study guide: Exam P-1

A patient must undergo hospitalization and surgery. The hospitalization and surgery charges are modeled by random variables uniformly distributed on the intervals [0, c] and [0, 3c-18], respectively, where c is a constant larger than 6.

The standard deviation of the hospitalization charge is 4\sqrt{3}.

Calculate the standard deviation of the surgery charge.

  • A) 2.8
  • B) 7.3
  • C) 10.4
  • D) 15.6
  • E) 20.8

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