Actuarial Notes

SOA Exam P Sample Question 573

Study guide: Exam P-1

A company insures 40,000 drivers. The annual number of auto accidents for individual drivers is modeled by mutually independent Poisson random variables with mean 0.16.

Calculate the coefficient of variation for the total annual number of auto accidents for all 40,000 drivers.

  • A) 0.01
  • B) 0.16
  • C) 0.40
  • D) 1.00
  • E) 2.50

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