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News

  • Future Actuary

    The Future Actuary, Winter 2014

    A joint newsletter of the Society of Actuaries/Casualty Actuarial Society.
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  • ASNY Logo

    Actuarial Society of Greater New York's Actuarial Career Day

    We cordially invite you to attend the 25th annual Actuarial Career Day. This event will take place on Sunday, January 12, 2014, at Columbia University’s Alfred Lerner Hall, 2920 Broadway, New York, NY 10027.
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  • Pencil

    Illinois State University Actuarial Career Information Fair 2013

    Enjoy math? Like a challenge? Love solving problems?
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The Professional Life

Wherever there is risk, there are opportunities for actuaries. And the recent financial crisis has further highlighted the skills actuaries bring to the table. Watch this new Actuaries in Action video to hear what some of today's actuaries say about the future of the profession and the increasing demand for actuaries, especially in nontraditional roles.

Do The Math

A tour operator has a bus that can accommodate 20 tourists. The operator knows that tourists may not show up, so he sells 21 tickets. The probability that an individual tourist will not show up is 0.02, independent of all other tourists. Each ticket costs 50, and is non-refundable if a tourist fails to show up. If a tourist shows up and a seat is not available, the tour operator has to pay 100 (ticket cost + 50 penalty) to the tourist. What is the expected revenue of the tour operator?

  1. 935
  2. 950
  3. 967
  4. 976
  5. 985

view answer