SOA Exam P Sample Question 133
Study guide: Exam P-1
An insurance company insures red and green cars. An actuary compiles the following data:
| Color of car | Red | Green |
|---|---|---|
| Number insured | 300 | 700 |
| Probability an accident occurs | 0.10 | 0.05 |
| Probability that the claim exceeds the deductible, given an accident occurs from this group | 0.90 | 0.80 |
The actuary randomly picks a claim from all claims that exceed the deductible.
Calculate the probability that the claim is on a red car.
- A) 0.300
- B) 0.462
- C) 0.491
- D) 0.667
- E) 0.692
Answer this question and see the worked solution