Actuarial Outpost SOA #53
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 Short-Term Actuarial Math Old Exam C Forum

#1
06-20-2018, 12:58 AM
 cashcrazy CAS Join Date: Nov 2016 College: Waterloo Posts: 11
SOA #53

Hi, I approached this question using the following formula:
Var[S] = E[X]^2*Var[N] + E[N]*Var[X]
where S = aggregate losses
X = claim amount
N = # of claims.

Is it possible to do this question using the above formula? If so, I'd appreciate any help. Thank you.
#2
06-20-2018, 01:01 AM
 OliverQueen Member Non-Actuary Join Date: Sep 2013 Posts: 78

That formula doesn't work because # of claims and severity are not indepedent