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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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2f
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