Moments of Loss and Payment Random Variables

Free SOA Exam P (Probability) lesson in Univariate Random Variables. 20 min read, ~3,045 words.

Variance of payment:, compute both pieces separately. Second moment with cap: integral over variable region + for the capped region. Coinsurance on variance:, the factor enters squared. Exponential shortcut: via memoryless property. Deductible increases CV; benefit limit decreases variance.

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