SOA Exam P Sample Question 582
Study guide: Exam P-1
The annual amount a travel insurance company pays for claims has standard deviation 3. The 52 weekly amounts the company pays for claims are independent and have the same standard deviation.
Calculate the standard deviation of each of these weekly amounts.
- A)
\dfrac{3}{52^2} - B)
\dfrac{3}{52} - C)
\sqrt{\dfrac{3}{52}} - D)
\dfrac{3}{\sqrt{52}} - E)
3\sqrt{52}
Answer this question and see the worked solution
Concepts tested
- Linear Combinations of Random Variables
- Variance and Standard Deviation
- Independent Random Variables