SOA Exam P Sample Question 517
Study guide: Exam P-1
An insurance policy provides coverage for two types of claims. The numbers of annual claims of Type I and Type II are denoted by X and Y, respectively.
The joint probability function of X and Y is given in the following table.
x \ y |
0 | 1 | 2 |
|---|---|---|---|
| 0 | 0.31 | p |
0.05 |
| 1 | 0.21 | 0.13 | q |
A Type I claim costs 750, and a Type II claim costs 1000. The expected annual Type I claims cost is 345.
Calculate the variance of Y.
- A)
0.25 - B)
0.57 - C)
0.67 - D)
0.75 - E)
0.82
Answer this question and see the worked solution
Concepts tested
- Conditional and Marginal Probability Functions
- Joint Probability Function
- Variance and Standard Deviation