SOA Exam P Sample Question 636
Study guide: Exam P-1
A company insures businesses in 60 different rating zones. The company models annual hail losses within each rating zone by an exponential distribution with mean 50,000. Because of the local nature of most hailstorms, annual losses in the rating zones are mutually independent.
Calculate the approximate probability that total annual hail losses over all 60 rating zones exceeds 3.5 million.
- A)
0.10 - B)
0.12 - C)
0.15 - D)
0.43 - E)
0.50
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