Exam P Practice Question 946
Study guide: Exam P-1
An insurance company sells policies to three independent policyholders. The benefit to each policyholder is 0, 1, or 2 with probabilities 0.5, 0.3, and 0.2 respectively. Let T be the total benefit paid.
Calculate the standard deviation of T.
- A) 0.81
- B) 0.99
- C) 1.35
- D) 1.40
- E) 1.58
Answer this question and see the worked solution