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SOA Exam P Question 292 Ratio of Variance with and without deductible
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Under a liability insurance policy, losses are uniformly distributed on [0, b], where b is a positive constant. There is a deductible of b/2. • Calculate the ratio of the variance of the claim payment (greater than or equal to zero) • from a given loss to the variance of the loss. • (A) 1:8 • (B) 3:16 • (C) 1:4 • (D) 5:16 • (E) 1:2
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