SOA Exam P Sample Question 13
Study guide: Exam P-1
In modeling the number of claims filed by an individual under an automobile policy during a three-year period, an actuary makes the simplifying assumption that for all integers n \geq 0, p(n+1) = 0.2\,p(n) where p(n) represents the probability that the policyholder files n claims during the period.
Under this assumption, calculate the probability that a policyholder files more than one claim during the period.
- A) 0.04
- B) 0.16
- C) 0.20
- D) 0.80
- E) 0.96
Answer this question and see the worked solution