SOA Exam FAM Sample Question 84
Study guide: Exam FAM
You are given the following properties of the distribution of the annual number of claims, N:
i) P(N = k) = p_k, \quad k = 0, 1, 2, \ldots
ii) p_0 = 0.45
iii) \dfrac{p_n}{p_m} = \dfrac{m!}{n!} \quad for m \ge 1 and n \ge 1
Calculate the probability that at least two claims occur during a year.
- A) 0.16
- B) 0.18
- C) 0.21
- D) 0.23
- E) 0.26
Answer this question and see the worked solution