SOA Exam P Sample Question 578
Study guide: Exam P-1
An insurance company offers two kinds of insurance: automobile insurance and homeowners insurance. This year, the company's profit from automobile insurance is normally distributed with mean 200 and standard deviation 400. The company's profit from homeowners insurance is normally distributed with mean 400 and standard deviation 300. The two profits are independent.
Let Z represent the standard normal random variable.
Determine the probability that the company's overall profit this year is positive.
- A)
P[Z > -1.83] - B)
P[Z > -1.20] - C)
P[Z > -0.86] - D)
P[Z > -0.83] - E)
P[Z > -0.50]
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