SOA Exam P Sample Question 601
Study guide: Exam P-1
Losses due to automobile accidents have a probability density function given by
f(x) = \begin{cases}
\dfrac{3}{1000}\left(\dfrac{1000}{x}\right)^4, & \text{for } x > 1000 \\[6pt]
0, & \text{otherwise.}
\end{cases}An automobile policy has a deductible of 1100.
Calculate the expected value of the policy payout for a random loss.
- A)
140 - B)
400 - C)
413 - D)
826 - E)
1240
Answer this question and see the worked solution