Exam P Practice Question 940
Study guide: Exam P-1
A health insurer determines that 35% of policyholders are smokers. Smokers file a claim with probability 0.40, and non-smokers with probability 0.10. Each claim has size 100.
Let X be the annual claim for a randomly selected policyholder. Calculate the standard deviation of X.
- A) 35
- B) 40
- C) 43
- D) 47
- E) 53
Answer this question and see the worked solution