Actuarial Notes

Exam P Practice Question 933

Study guide: Exam P-1

A compound distribution has N \sim \text{Poisson}(2) claims. Each individual claim amount X_i \sim \text{Poisson}(3), independent of everything else. Let S = \sum_{i=1}^{N} X_i.

Calculate the standard deviation of S.

  • A) \sqrt{24}
  • B) \sqrt{36}
  • C) \sqrt{48}
  • D) \sqrt{60}
  • E) \sqrt{100}

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