SOA Exam P Sample Question 15
Study guide: Exam P-1
An insurance company determines that N, the number of claims received in a week, is a random variable with P[N = n] = \dfrac{1}{2^{n+1}} where n \geq 0. The company also determines that the number of claims received in a given week is independent of the number of claims received in any other week.
Calculate the probability that exactly seven claims will be received during a given two-week period.
- A) 1/256
- B) 1/128
- C) 7/512
- D) 1/64
- E) 1/32
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