SOA Exam P Sample Question 10
Study guide: Exam P-1
An actuary studying the insurance preferences of automobile owners makes the following conclusions:
- (i) An automobile owner is twice as likely to purchase collision coverage as disability coverage.
- (ii) The event that an automobile owner purchases collision coverage is independent of the event that he or she purchases disability coverage.
- (iii) The probability that an automobile owner purchases both collision and disability coverages is 0.15.
Calculate the probability that an automobile owner purchases neither collision nor disability coverage.
- A) 0.18
- B) 0.33
- C) 0.48
- D) 0.67
- E) 0.82
Answer this question and see the worked solution