Actuarial Notes

SOA Exam P Sample Question 172

Study guide: Exam P-1

The number of severe storms that strike city J in a year follows a binomial distribution with n = 5 and p = 0.6. Given that m severe storms strike city J in a year, the number of severe storms that strike city K in the same year is m with probability 1/2, m + 1 with probability 1/3, and m + 2 with probability 1/6.

Calculate the expected number of severe storms that strike city J in a year during which 5 severe storms strike city K.

  • A) 3.5
  • B) 3.7
  • C) 3.9
  • D) 4.0
  • E) 5.7

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