Actuarial Notes

SOA Exam P Sample Question 563

Study guide: Exam P-1

Losses under a boat insurance policy are exponentially distributed with mean \dfrac{400}{\ln 2}.

For each loss, the claim payment is the amount of the loss, up to a maximum of 1000.

Calculate the expected value of a claim payment.

  • A) 298
  • B) 367
  • C) 400
  • D) 475
  • E) 577

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