Actuarial Notes

SOA Exam P Sample Question 669

Study guide: Exam P-1

A boat insurance company's annual profit is normally distributed with mean 100. The mean and standard deviation remain constant from year to year, and the annual profits are independent.

The probability that the company's annual profit is negative in at least one of the next two years is 0.36.

Calculate the standard deviation of the insurance company's annual profit.

  • A) 84
  • B) 109
  • C) 119
  • D) 125
  • E) 127

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