SOA Exam P Sample Question 614
Study guide: Exam P-1
An insurance company sells policies for two years. The company's profit in the first year is normally distributed with mean 660 and standard deviation 1100.
The company makes adjustments in the second year. The company's profit in the second year is normally distributed with mean \mu and standard deviation 2640.
Assume that the annual profits are independent.
The probability that the company earns a positive overall profit in the two-year period is 0.8643.
Calculate \mu.
- A)
1320 - B)
1940 - C)
2486 - D)
2740 - E)
3454
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