SOA Exam P Sample Question 99
Study guide: Exam P-1
The probability that a member of a certain class of homeowners with liability and property coverage will file a liability claim is 0.04, and the probability that a member of this class will file a property claim is 0.10. The probability that a member of this class will file a liability claim but not a property claim is 0.01.
Calculate the probability that a randomly selected member of this class of homeowners will not file a claim of either type.
- A) 0.850
- B) 0.860
- C) 0.864
- D) 0.870
- E) 0.890
Answer this question and see the worked solution