Actuarial Notes

SOA Exam P Sample Question 557

Study guide: Exam P-1

A customer just purchased a refrigerator with a five-year warranty. The number of years before the refrigerator malfunctions is exponentially distributed. The probability that the refrigerator malfunctions before the five-year warranty expires is 0.40.

Calculate the standard deviation of the number of years before the refrigerator malfunctions.

  • A) 0.10
  • B) 3.13
  • C) 5.46
  • D) 9.79
  • E) 12.50

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