SOA Exam P Sample Question 16
Study guide: Exam P-1
An insurance company pays hospital claims. The number of claims that include emergency room or operating room charges is 85% of the total number of claims. The number of claims that do not include emergency room charges is 25% of the total number of claims. The occurrence of emergency room charges is independent of the occurrence of operating room charges on hospital claims.
Calculate the probability that a claim submitted to the insurance company includes operating room charges.
- A) 0.10
- B) 0.20
- C) 0.25
- D) 0.40
- E) 0.80
Answer this question and see the worked solution