SOA Exam P Sample Question 624
Study guide: Exam P-1
An insurance company offers two kinds of insurance: automobile insurance and homeowners insurance. This year the company's profit from automobile insurance is normally distributed with a mean of 400 and a standard deviation of 200. Also this year, the company's profit from homeowners insurance is normally distributed with a mean of -100 and a standard deviation of 500. The two profits are independent.
Calculate the probability that the company's overall profit this year is positive.
- A)
0.41 - B)
0.59 - C)
0.63 - D)
0.67 - E)
0.71
Answer this question and see the worked solution