SOA FAMFundamentals of Actuarial Mathematics

Associateship (ASA)

3.5 hours (1.75h per half if split)·34 multiple-choice (17 + 17)·≈350 study hours

Score 0/0 · 11 MC

FAM · Q1
Multiple choice
FAM-S: Introductory credibility
Under limited-fluctuation (full) credibility for claim counts, the standard requires $P(|\hat\lambda-\lambda|\le k\lambda)\ge p$ . With $z_{(1+p)/2}=1.96$ and $k=0.05$ , calculate the expected number of claims needed for full credibility.