SOA Exam P Sample Question 519
Study guide: Exam P-1
A tornado occurs in each of two cities, A and B. The durations of the tornadoes in cities A and B are independent and exponentially distributed with means 5 minutes and 4 minutes, respectively.
The tornadoes in cities A and B result in damages valued at 1.00 and c per minute, respectively, where c is a constant.
The standard deviation of the total damage to the two cities is 5.20.
Calculate c.
- A)
0.05 - B)
0.13 - C)
0.36 - D)
2.35 - E)
5.51
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