SOA Exam P Sample Question 554
Study guide: Exam P-1
The base fare charged by airlines for flights from City A to City B is uniformly distributed on [100, 225]. In addition to the base fare, the airlines charge a processing fee of 15 and a 30% fuel surcharge applied to the base fare.
Calculate the standard deviation of the total charge for a flight from City A to City B.
- A)
10.8 - B)
36.1 - C)
41.1 - D)
46.9 - E)
61.9
Answer this question and see the worked solution
Concepts tested
- Uniform Continuous Distribution
- Variance and Standard Deviation
- Linear Combinations of Random Variables