Actuarial Notes

SOA Exam P Sample Question 615

Study guide: Exam P-1

A taxicab company purchases an insurance policy that covers damages from car accidents. The number of accidents on each day is Poisson distributed with mean \lambda, and the number of accidents on different days are mutually independent. The expected number of accidents each week is 63.

Calculate the probability that the number of accidents in one day is two or more standard deviations below the expected number of accidents in one day.

  • A) 0.006
  • B) 0.021
  • C) 0.116
  • D) 0.156
  • E) 0.207

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