exercise:C508ac5675: Difference between revisions
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Revision as of 08:37, 21 March 2026
An actuary is studying hurricane models. A year is classified as a high, medium, or low hurricane year with probabilities 0.1, 0.3, and 0.6, respectively. The numbers of hurricanes in high, medium, and low years follow Poisson distributions with means 20, 15, and 10, respectively.
Calculate the variance of the number of hurricanes in a randomly selected year.
- 11.25
- 12.50
- 12.94
- 13.42
- 23.75
Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.