Actuarial Notes

Exam P Practice Question 920

Study guide: Exam P-1

An insurance company covers 100 independent drivers, each of whom independently files 0, 1, or 2 claims with probabilities 0.65, 0.25, and 0.10 respectively. Let T denote the total number of claims.

Calculate the standard deviation of T.

  • A) 5.40
  • B) 6.25
  • C) 6.69
  • D) 7.12
  • E) 7.81

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