Exercise


ABy Admin
May 08'23

Answer

Solution: B

The sum of independent Poisson variables is also Poisson, with the means added. Thus the number of tornadoes in a three week period is Poisson with a mean of 3x2 = 6. Then,

[[math]] P( N \lt 4) = p(0) + p(1) + p(2) + p(3) = e^{-6}\left( \frac{6^0}{0!} + \frac{6^1}{1!} + \frac{6^2}{2!} + \frac{6^3}{3!} + \right) = 0.1512. [[/math]]

Copyright 2023. The Society of Actuaries, Schaumburg, Illinois. Reproduced with permission.

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