SOA Exam P Sample Question 586
Study guide: Exam P-1
An insurance company sells an automobile policy that pays 80% of any losses that exceed the deductible of 500. The loss amounts (in units of 1000) follow an exponential distribution with mean 6.
Calculate the probability that the policy payment on a randomly selected loss exceeds 5000.
- A)
0.024 - B)
0.318 - C)
0.325 - D)
0.675 - E)
0.682
Answer this question and see the worked solution