Exam P Practice Question 948
Study guide: Exam P-1
A random sample of 4 independent claims is drawn, where each claim size X has a lognormal distribution with \ln X \sim N(6, 1^2). Let M be the maximum claim size.
Calculate the probability that M exceeds e^{7}.
- A)
1-(1-e^{-1/2})^4 - B)
(1-\Phi(1))^4 - C)
\Phi(1)^4 - D)
1-\Phi(1)^4 - E)
4[1-\Phi(1)]
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