SOA Exam P Sample Question 480
Study guide: Exam P-1
In a group of 144 car insurance policyholders, each policyholder has no accidents this year with probability 0.80, one accident with probability 0.16, and two accidents with probability 0.04.
The numbers of accidents this year for different policyholders are mutually independent.
Calculate the variance of the total number of accidents this year for this group of policyholders.
- A)
3.15 - B)
34.56 - C)
37.79 - D)
46.08 - E)
54.37
Answer this question and see the worked solution
Concepts tested
- Linear Combinations of Random Variables
- Variance and Standard Deviation
- Independent Random Variables