SOA Exam P Sample Question 626
Study guide: Exam P-1
An insurance company sells two types of policies. The annual number of claims for Type 1 policies follows a Poisson distribution with mean \lambda_1 and the annual number of claims for Type 2 policies follows a Poisson distribution with mean \lambda_2. The probability that a Type 1 policy has no claims in one year is one-half of the probability that a Type 2 policy has no claims in one year.
Let V_n be the variance in the annual number of claims for a Type n policy.
Calculate V_1 - V_2.
- A)
0.693 - B)
0.724 - C)
0.766 - D)
0.813 - E)
0.832
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