SOA Exam P Sample Question 617
Study guide: Exam P-1
A policyholder owns two properties and has hurricane insurance on both properties. One property is located in Texas. The other property is located in Florida.
Let T be the number of hurricane claims in a 5-year period for the Texas property, and let F be the number of hurricane claims in a 5-year period for the Florida property. The joint probability function for T and F is given in the following table.
| Texas \ Florida | 0 | 1 | 2 | 3 |
|---|---|---|---|---|
| 0 | 0.40 | 0.14 | 0.04 | 0.02 |
| 1 | 0.16 | 0.08 | 0.04 | 0.02 |
| 2 | 0.04 | 0.03 | 0.02 | 0.01 |
Calculate \text{Var}(T \mid F = 1).
- A)
0.18 - B)
0.24 - C)
0.45 - D)
0.49 - E)
0.80
Answer this question and see the worked solution