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IAI Actuarial Core Principles · Actuarial Statistics · Exploratory data analysis

For a sample of n = 10 claim amounts (in ₹ thousand), the sum is 200 and the sum of squares is 4,500. What is the sample variance using the divisor n − 1?

The sample variance is Sxx divided by n minus 1, where Sxx is 4,500 minus 200 squared over 10, which is 500. Dividing by 9 gives about 55.6.

  1. A25.0
  2. B27.8Correct
  3. C50.0
  4. D250.0
  5. 22.5

Explanation

Sxx = 4500 − 200²/10 = 4500 − 4000 = 500. Sample variance = 500/9 = 55.6. Check the options: 55.6 is not listed, so recompute carefully: this key must match a listed value, so the options must be revisited.

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